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Refund utility

Income-Tax Refund Interest Calculator — Section 244A

Reviewed by Finin2min Editorial Desk · Last reviewed 11 August 2026

Estimate statutory refund interest using the refund amount, eligible start date, actual refund date and excluded delay.

Estimate refund interest

Calculation basis

Interest uses the legally eligible refund principal rounded down to a whole ₹100, multiplied by the monthly rate and eligible months or parts. Enter statutory entitlement and dates separately.

Source check: 21 October 2026. Rule 119A(b)–(c) / 2026 Rule 269(b)–(c); section 244A and successor provision.

Official provision 1

Eligible months or parts
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Estimated interest
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The legally correct start date differs by refund category and filing timing.

How This Is Calculated

Under Section 244A, taxpayers are entitled to interest on income-tax refunds, calculated at a notified rate per month (or part of a month) for the period from a category-specific start date until the refund is granted, with certain months excludable in specific circumstances (like delay attributable to the taxpayer). The exact start date depends on the nature of the refund (excess TDS/advance tax vs. other categories).

Frequently Asked Questions

Am I entitled to interest on my income-tax refund? ▼
Yes, generally. Under Section 244A, refunds carry interest at a notified monthly rate from a category-specific start date until the refund is issued — this is automatic and doesn't require a separate claim in most cases.
Can any months be excluded from the refund interest calculation? ▼
Yes. If a delay in granting the refund is attributable to the taxpayer (for example, delay in responding to a department query), that period can be excluded from the interest computation.
Is refund interest itself taxable? ▼
Yes. Interest received on an income-tax refund is taxable as "Income from Other Sources" in the year it's received, separate from and in addition to the refund principal itself, which is not taxable (since it's just your own money being returned).

Related guidance: Income-Tax Refund Interest: Where to Report It and Which ITR? | Finin2min · Income Tax Refund Status & Delays: How to Track and What to Do | Finin2min

Income-tax refund interest control

Section 244A interest is not simply ‘refund × months’ in every case. Start date, rate, part-of-month treatment, cause of delay, self-assessment tax and assessment/refund history can change the computation.

Reconcile the calculator inputs to the intimation/order and Form 26AS/AIS/TDS/advance-tax records. A CPC refund amount should not be reverse-engineered without checking adjustments and excluded delay periods.

Input integrity

  • Use source documents rather than approximate memory.
  • Confirm period, units, tax regime/category and sign conventions.
  • Test zero, threshold and just-above-threshold cases where relevant.

Output interpretation

  • Separate arithmetic output from legal eligibility/classification.
  • Preserve assumptions and the official-source date.
  • Use the linked detailed guide for exceptions and evidence.

Primary-source starting points

Reviewed 22 August 2026. Always test later amendments, corrigenda and portal implementation before a live filing or transaction.

Methodology, assumptions and sources

Scope: Computes interest payable by the Income Tax Department on a delayed refund under Section 244A.

Calculation logic

  1. Where the return was filed on or before the due date: interest = 0.5% per month (or part of a month) on the refund amount, computed from 1 April of the assessment year until the date the refund is granted.
  2. Where the return was filed after the due date: interest is computed from the date of filing (not 1 April) until the date the refund is granted, at the same 0.5% per month rate.
  3. No interest is payable if the refund amount is less than 10% of the tax determined on regular assessment, per the proviso to Section 244A.

Inputs and assumptions

Exclusions and edge cases

Sources

Review status: reviewed and approved by CA Nikhil Gupta on 7 July 2026.

Guides that use this calculator

Background, worked examples and the rules behind these numbers.