Section 244 of ITA, 1961 : Section 244: Interest On Refund Where No Claim Is Needed

Explanation using Example

Imagine Mr. Sharma filed his income tax return and, based on the assessment, was supposed to receive a refund of ₹50,000. The assessment order was passed on June 30, 2023. However, he did not receive his refund within three months from the end of the month in which the order was passed, i.e., by September 30, 2023. According to Section 244(1) of the Income-tax Act, 1961, Mr. Sharma is now entitled to receive interest at 15% per annum on the refund amount from October 1, 2023, until the date when the refund is actually granted to him by the tax authorities.