INCOME TAX2 Oct 2026
Relief for taxpayers: Made a mistake in your income tax return? You still get your refund interest, rules ITAT | Mint
Mumbai's Income-tax Appellate Tribunal (ITAT) has ruled that a mistake in your income tax return does not cost you interest on your refund. The tax department can hold back interest only for delays you actually caused. The tribunal ordered interest released on a ₹5.39 crore refund after a taxpayer corrected capital gains reporting. So file correct returns, and claim your refund interest if it is wrongly denied.
Key Statutory Highlights
- The Mumbai bench of the Income-tax Appellate Tribunal held that an error in an income tax return does not take away the taxpayer's right to interest on refunds under Section 244A.
- Section 244A(2) allows the department to withhold interest only for periods of delay directly caused by the taxpayer.
- The tribunal directed the department to release interest on a ₹5.39 crore refund after a revised claim treating the property as a long-term capital asset under Section 112 was accepted.
Actionable Advice for Taxpayers / Founders:If refund interest has been denied to you, check with your tax advisor whether the delay was genuinely caused by you or by the department, and whether the denial can be challenged in appeal. The result will depend on your own facts.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: