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
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?
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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?
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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?
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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).
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.
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
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.
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.
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
Interest computation uses the refund amount and relevant dates (filing date, due date, refund date) as entered by the user — actual computation and interest crediting is done by the department's systems (CPC) and may reflect minor rounding/period differences.
Where the delay in refund is attributable to the taxpayer (e.g., delay in providing bank account details), interest for that period is not payable, per the exclusion in Section 244A — the calculator does not itself determine attribution, which should be checked against the department's own computation shown in the refund order.
Exclusions and edge cases
This is an estimation tool to help taxpayers check the department's computation, not a substitute for the refund order itself, which is the authoritative statement of interest granted.
Does not itself track or claim the refund — refunds are processed automatically by CPC/the e-filing system after return processing.