5 Income Tax Rules Regarding ITR Refund You Should Know

The last date to file the income tax return (ITR) for the Financial Year 2022-2023 (Assessment Year 2023-24) was July 31. Those who have filed their ITR for and are eligible to get their ITR refund can view it on Tax Information Network service of the Income Tax Department. 

Here are 5 Income Tax Rules regarding ITR refund you should know

All Tax paying Individuals who file ITR within or after the due date can take an ITR refund

The Income Tax department starts counting Tax Refund Interest from April 1 of the Assessment Year and keeps adding up until the day you actually get your refund. However, the refund formula works only if you've filed your income tax return on time. Hence, for the current financial year (FY 2022-23), if you have filed ITR within the given due date i.e July 31, 2023, you will get interest from April 1, 2022.

Taxpayer will get a monthly interest of 0.50 percent on the ITR refund amount.

ITR refund amount is non-taxable. However, an interest that we get from the government on the refund amount is taxable.

The interest rate on the ITR refund is computed under section 234D. For instance, if we have to calculate interest on Rs 1005 for the time period of 2 months 17 days. As per section 234D, interest will be calculated on Rs 1000 and the time period will be 3 months.