ITR Refund Delayed? No Need to Worry—Expect a Bigger Payout With Interest This December

As the year draws to a close, many taxpayers are still waiting for their Income Tax Refund to reflect in their bank accounts. If you are one of them, there’s nothing to panic about. The Income Tax Department has accelerated the clearance of pending refunds, and thousands of taxpayers have already received their money in the last two days—many of them with more than what they expected.

The CBDT Chief, Ravi Agrawal, had already announced in November that all pending refunds will be settled by December. The delay, in fact, is proving beneficial for many taxpayers because it comes with an additional interest payout.

6% Annual Interest on Delayed Refunds

Under Section 244A of the Income Tax Act, if the department delays issuing a refund, the taxpayer becomes eligible to receive 6% annual interest on the pending amount. This interest is calculated from the date the refund is considered due—usually after ITR processing or from the beginning of the financial year.

For example, if you are expecting a refund of ₹50,000 and it gets delayed by three months, you will receive about ₹750 as additional interest. Many taxpayers receiving refunds this December are getting this exact benefit. The best part is that this interest is added automatically—no separate claim is required.

Why Are Refunds Delayed and When Will Yours Arrive?

Refund processing takes time due to verification, high-value transaction checks, and back-end processing at the CPC. The department has clarified that 99% of refunds will be dispatched by the end of December.

If your portal status shows “Refund Issued” but the amount has not reached your bank account yet, wait for 7–10 more days. You should also check your AIS (Annual Information Statement) on the e-filing portal for any discrepancies. Errors should be corrected immediately.

You can track your refund using the unique Refund ID on the portal, similar to a PNR status check.

How to Ensure Faster and Secure Refunds

• Recheck your bank details, especially the IFSC code. A wrong IFSC can lead to refund rejection.

• Keep your mobile number and email updated to avoid OTP failures.

• If your refund amount exceeds ₹50,000, you might receive a CPC notice. Respond promptly to avoid further delays.