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 Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 244A
Section 244A of the 1961 Act sets out the rules on 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.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 244A is retained and renumbered as Section 280 of the Income-tax Act, 2025. Retained. No interest is paid if the refund is less than 10% of the tax determined on assessment.
The transition impact on Section 244A is assessed as High. Compensation for taxpayers for excess taxes withheld.
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
Which subject does Section 244A of the 1961 Act cover?
Section 244A of the Income Tax Act, 1961 covers 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 Income-tax Act, 2025?
Section 244A of the Income Tax Act, 1961 maps to Section 280 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. No interest is paid if the refund is less than 10% of the tax determined on assessment.
How does the Income-tax Act, 2025 affect Section 244A in practice?
The transition impact for Section 244A is rated High. Compensation for taxpayers for excess taxes withheld.
What is new about Section 244A under the Income-tax Act, 2025?
Interest period for refund of self-assessment tax starts from the date of filing or payment, whichever is later. These points are specific to Section 244A (Interest on refunds).
Disclaimer: This mapping of Section 244A (Interest on refunds) to Section 280 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 244A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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