What happened
For AY 2026-27 old-Act refunds, Section 244A provides 0.5% monthly simple interest when eligible; this is an existing rule, not a new benefit.
Why it matters
For common refund categories, a refund below 10% of determined tax earns no interest; the refund itself may still be payable.
Remember this
A tax refund and interest on it are separate entitlements.
More context & who is affected
For AY 2026-27 refunds under the old Act, Section 244A offers 0.5% simple interest per eligible month, including incomplete months. Waiting alone does not establish eligibility.
TDS, TCS, advance-tax and self-assessment refunds earn no interest when the refund amount is below 10% of determined tax. This does not mean the refund itself is lost.
Self-assessment interest starts at filing or payment, whichever is later, and runs until the refund is granted. Delays attributable to the taxpayer are excluded.
- Monthly simple interest
- 0.5% Eligible periods include incomplete months; this is not compound interest.MinteCourtsIndia
- Common-category threshold
- 10% Refunds below this share of determined tax earn no interest under clauses (a) and (aa); the exclusion is not inclusive of 10%.eCourtsIndia
AY 2026-27: existing refund rights
This explainer covers AY 2026-27 refunds under the old Act, not a new benefit. Earlier-year refund rights survive the legal transition. The threshold covers TDS, TCS, advance-tax and self-assessment refunds. eCourtsIndia is a private statutory-text mirror.
Indian Taxpayers
A refund can be payable without an additional interest payment under the threshold rule.
Indian Taxpayers
For self-assessment refunds, both filing and payment dates matter when checking the interest period.
Reporting fromMint ↗eCourtsIndia ↗
Sources & verification2 sources · 4 claims
These are the records behind this briefing. Linked reporting is not the same as independent confirmation.
- MintReportingPublished Oct 5, 2026 · Accessed Oct 6, 2026
- eCourtsIndiaResearch · Accessed Oct 6, 2026
Claims and linked sources
Section 244A allows simple interest of 0.5% per eligible month, including incomplete months.
Under Section 244A(1)(a) and (aa), refunds below 10% of determined tax earn no interest.
Self-assessment refund interest starts at filing or tax payment, whichever happens later.
Section 244A excludes refund-proceeding delays attributable to the taxpayer from the interest period.
