Tax Refund Interest Cannot Be Denied Merely Because of an Incorrect ITR: What Taxpayers Should Know

By CA. Aaryan Kanodia   |   05-10-2026 13:30:00

A mistake in your income-tax return may lead to scrutiny, correction or even a dispute, but does it automatically take away your right to receive interest on a legitimate tax refund? A recent ruling of the Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) has brought important relief for taxpayers. The tribunal has clarified that merely filing an incorrect ITR is not enough for the Income Tax Department to deny statutory interest on a refund. What matters is whether the taxpayer actually Read More