Section 244A → Section 280
Interest on refunds
Quick Answer
Section 244A of the Income Tax Act, 1961 (Interest on refunds) corresponds to Section 280 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 244A
Provision Summary
Govt pays 0.5% interest per month (6% p.a.) on tax refunds from the start of the AY until the refund date.
Sec 280
Provision Summary
Retained. No interest is paid if the refund is less than 10% of the tax determined on assessment.
Key Changes & Highlights
- Interest period for refund of self-assessment tax starts from the date of filing or payment, whichever is later.
Frequently Asked Questions
What does Section 244A of the Income Tax Act 1961 deal with?
Section 244A (Interest on refunds) Govt pays 0.5% interest per month (6% p.a.) on tax refunds from the start of the AY until the refund date.
What is the new section number for Section 244A under the Direct Tax Code 2025?
Section 244A of the ITA 1961 maps to Section 280 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 244A under the new tax code?
Section 244A is marked as "Retained" with status "Active". Impact: High - Compensation for taxpayers for excess taxes withheld.
What are the key changes to Section 244A under DTC 2025?
Interest period for refund of self-assessment tax starts from the date of filing or payment, whichever is later.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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