Interest on Tax Refund

Tax Glossary Definition

Interest on Tax Refund

Interest on Tax Refund – Interest on tax refund refers to the interest paid by the Income Tax Department to a taxpayer when a tax refund is due but delayed. This interest compensates the taxpayer for the time during which the excess tax was held by the government. Assessment Year (AY) Context: Interest accrued on refunds for taxes paid in a Financial Year (FY) is evaluated in the corresponding Assessment Year (AY).

Example: If a taxpayer paid excess tax of ₹50,000 in FY 2022–23, and the refund is processed later, the department may pay interest on this amount. Both the refund and the interest are reported in AY 2023–24

India's Most Trusted
Pro Tax Filer

Discover why we're one of India's most trusted Pro Tax Filers, built on a foundation of accuracy and reliability.

  • We ensure maximum tax benefits.

  • Taxes? Handled by our CAs and experts.

  • Reliable, year-round tax support at no cost.

  • Satisfaction or your money back came twice.

Start Filing

Scan the QR code to Download the app

Mobile App Available on:

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App

Have Questions? Let’s Talk!

Chat With Us

Scan to chat

Scan QR Code

OR
Start Chat
Mobile Apps Available On
This feature is available on our mobile app. Get the app now to access this feature!

DOWNLOAD For IPHONE

TaxFilr App

DOWNLOAD For Android

TaxFilr App