New Delhi: Filling ITR is a tedious task for many. Those who have filed their ITR before the July 31 deadline should be now in the process of verifying the same while those who didn’t file ITR yet can file it till December 31, 2022, by paying a late fee.
Taxpayers who have filed it within July 31 or after it, are eligible for an income tax refund if they have paid extra tax. ITR refund is the type of extra tax paid by the earning individuals to the government. Income Tax Department allows taxpayers to claim for the extra tax paid by them.
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Here is the list of 5 income tax rules regarding ITR refund
Eligibility: Tax paying Individuals filing ITR within or after the due date can take an ITR refund.
Interest: For the current financial year (FY 2022-23), if you have filed ITR within the given due date i.e July 31, 2022, you will get interest from April 1, 2022.
Interest Rate: Taxpayer will get a monthly interest of 0.50 percent on the ITR refund amount.
Taxation Rules: ITR refund amount is non-taxable. However, an interest that we get from the government on the refund amount is taxable.
Interest Calculation: 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.
