Income Tax Refund

 When you file your tax return and the Income Tax Department owes you a refund, there’s a possibility that the department might delay processing the refund. To compensate for this delay, the tax authorities provide interest on the amount of refund owed to you. This interest serves as a financial relief for taxpayers who have overpaid taxes during the financial year. When Do You Qualify for Interest on Tax Refund? The interest on your tax refund is calculated if: You file your income tax return (ITR) on time. The refund is delayed for more than the statutory processing time set by the government. Typically, if the refund is delayed beyond a specific period (such as 90 days from the filing deadline), you are eligible to earn interest on the refund amount.