{"id":17235,"date":"2026-11-06T05:31:09","date_gmt":"2026-11-06T05:31:09","guid":{"rendered":"https:\/\/accelaronix.in\/blogs\/?p=17235"},"modified":"2026-11-06T05:31:09","modified_gmt":"2026-11-06T05:31:09","slug":"income-tax-refund-interest-section-244a","status":"publish","type":"post","link":"https:\/\/www.billcut.com\/blogs\/income-tax-refund-interest-section-244a\/","title":{"rendered":"Income Tax Refund Interest Section 244A: What You Should Know"},"content":{"rendered":"

By BillCut
Last updated: 2 November 2026<\/p>\n

Income tax refund interest section 244A is the rule on the interest the Income Tax Department may pay you when it grants a refund. As reproduced on the Department\u2019s section 244A page<\/a>, the Income-tax Act, 1961 sets simple interest at 1% per month or part of a month. This post explains how that works, based on that page, checked on 2 November 2026.<\/p>\n

What is section 244A?<\/h2>\n

Section 244A sits in the chapter on refunds in the Income-tax Act, 1961. It says when interest is payable on a refund, how it is counted and when it is not payable.<\/p>\n

What is the rate of interest on a refund?<\/h2>\n

The page states simple interest at 1% per month or part of a month. Simple interest means interest is not charged on earlier interest. A part month counts as a full month.<\/p>\n

From when does the interest run?<\/h2>\n

The page splits the rule into two cases.<\/p>\n\n
Case<\/th>Interest runs from<\/th>Interest runs to<\/th><\/tr>\n
Refund of tax collected at source, advance tax, or tax treated as paid under section 199<\/td>1 April of the assessment year<\/td>Date the refund is granted<\/td><\/tr>\n
All other cases<\/td>Date of payment of the tax or penalty<\/td>Date the refund is granted<\/td><\/tr>\n<\/table>\n

For the second case, the page explains the date of payment as the date the amount paid goes beyond the demand in a notice under section 156.<\/p>\n

When is no interest payable?<\/h2>\n