Income-tax Act, 1961Section 244A
- 0.5% per month on refunds
- From 1 April for TDS/advance tax refunds if return filed by due date
- From date of return otherwise
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 244A
InterestSection 244A → Section 437
Interest on income tax refunds
Section 244A of the old Income-tax Act, 1961 · new section 437 under the Income-tax Act, 2025
New reference Section 437
Income-tax Act, 2025Section 437
- Same 0.5% per month, now section 437
- Period rules set out in a table
- Self-assessment tax refunds: from return/payment date
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered; rate and periods unchanged.
Practice notes
- Interest on excess refund recovered from the assessee (old 234D) is section 426.
Frequently asked
What is the interest on income tax refund under the new Income Tax Act 2025?
0.5% per month or part of a month under section 437.
What is section 244A called in the new Income-tax Act, 2025?
Section 244A of the Income-tax Act, 1961 corresponds to Section 437 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 244A under the new Income Tax Act?
Renumbered; rate and periods unchanged.
Is section 244A still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 244A of the 1961 Act. Section 437 of the 2025 Act applies from tax year 2026-27.