🇮🇳 India

Income Tax Refund Calculator India — FY 2025-26

Estimate your income tax refund by comparing TDS deducted against your actual tax liability under the new or old regime. Calculate interest on refund under Section 244A, and compare which regime gives you a higher refund. Updated for FY 2025-26 with Budget 2025 slabs.

Your total annual income from all sources (salary, business, interest, etc.)
Total TDS deducted by employer, bank, etc. during the financial year
New regime is the default from FY 2023-24
Self-assessment or advance tax paid during the year

Try another scenario

How to Use This Calculator

Refund Estimator tab

Enter your gross annual income, TDS deducted by your employer or deductor, and select your tax regime (new or old). If you chose the old regime, expand "More options" to add your deductions under Section 80C, 80D, HRA, home loan interest, and NPS. The calculator computes your actual tax liability and compares it with TDS paid to show your refund or balance due.

Interest on Refund tab

Enter the expected refund amount, your ITR filing date, and expected processing date. The calculator computes interest at 6% per annum (0.5% per month) under Section 244A of the Income Tax Act. This helps you estimate the total amount you will receive including interest.

Old vs New Refund tab

Enter the same income and TDS to see a side-by-side comparison of your refund under both tax regimes. Add your old-regime deductions to see which regime gives you a higher refund. This is especially useful when deciding which regime to opt for while filing your ITR.

Share your result

Every input is encoded in the URL. Click Share to send your exact scenario to your CA, tax advisor, or save it for later reference.

The Formula

Your income tax refund is the difference between taxes already paid and your actual tax liability:

Refund = TDS Paid + Advance Tax − Actual Tax Liability

Actual Tax Liability:
1. Gross Income − Deductions = Taxable Income
2. Apply slab rates to get tax on income
3. Subtract rebate u/s 87A (if eligible)
4. Add surcharge (if income > &rupee;50 lakh)
5. Add 4% Health & Education Cess

Interest on Refund (Section 244A):
Interest = Refund Amount × 6% × (Months / 12)
Calculated from 1 April of AY or filing date, whichever is later
Part of a month counts as a full month

If TDS + Advance Tax exceeds your actual liability, you are entitled to a refund. If it is less, you owe additional tax (self-assessment tax) which should be paid before filing your ITR.

Example

Priya — Salaried professional, &rupee;10 lakh income, New Regime

Priya earns &rupee;10,00,000 annual salary. Her employer deducted &rupee;85,000 as TDS during FY 2025-26. She files under the new tax regime.

Step 1: Compute taxable income

Gross salary&rupee;10,00,000
Standard deduction (new regime)−&rupee;75,000
Taxable income&rupee;9,25,000

Step 2: Calculate tax (New Regime FY 2025-26)

0–4L: Nil&rupee;0
4–8L at 5%&rupee;20,000
8–9.25L at 10%&rupee;12,500
Tax before cess&rupee;32,500
Cess (4%)&rupee;1,300
Total tax liability&rupee;33,800

Step 3: Calculate refund

TDS deducted&rupee;85,000
Actual tax liability&rupee;33,800
Refund&rupee;51,200

Step 4: Interest under Section 244A

Refund amount&rupee;51,200
Processing time (approx)3 months
Interest at 6% p.a.&rupee;768
Total refund with interest&rupee;51,968

Priya will receive approximately &rupee;51,968 as refund (including &rupee;768 interest). The interest of &rupee;768 is taxable in the year she receives it.

FAQ

Log in to the e-filing portal (eportal.incometax.gov.in) and navigate to e-File > Income Tax Returns > View Filed Returns. Select the relevant assessment year to see your refund status. You can also check on the NSDL/TIN website (tin.tin.nsdl.com) using your PAN and assessment year. Refunds are typically processed within 1-6 months after e-verification. The refund is credited directly to the bank account pre-validated and linked with your PAN on the e-filing portal.
Under Section 244A, the Income Tax Department pays 6% per annum simple interest (0.5% per month) on tax refunds. Interest is calculated from 1 April of the assessment year or the date of filing ITR, whichever is later, until the date the refund is granted. A part of a month is counted as a full month. The interest is taxable under "Income from Other Sources" in the year you receive it. Note: if you file a belated return (after the due date), interest is calculated only from the date of filing, not from 1 April.
Common reasons include: (1) Outstanding demand adjustment — the IT department adjusts pending tax demands from previous years against your refund under Section 245 (they must send an intimation before doing so). (2) TDS mismatch — TDS claimed in your ITR does not match Form 26AS or AIS (Annual Information Statement). (3) Interest under Section 234A/B/C — penalties for late filing or non-payment of advance tax are deducted from your refund. (4) CPC recomputation — the Centralized Processing Centre may disallow certain deductions in the intimation under Section 143(1). Check the intimation order carefully and file a rectification under Section 154 if you disagree.
For FY 2025-26 (AY 2026-27), the ITR filing due dates are: 31 July 2026 for individuals and HUFs not subject to audit, 31 October 2026 for businesses and professionals requiring tax audit, and 30 November 2026 for those requiring transfer pricing reports. Filing after the due date is a belated return under Section 139(4), which can be filed up to 31 December 2026 but attracts a late fee of &rupee;5,000 (&rupee;1,000 if income is below &rupee;5 lakh) under Section 234F, and interest on refund is calculated only from the filing date (not from 1 April).
Yes, interest on income tax refund received under Section 244A is fully taxable. It must be reported under "Income from Other Sources" in your ITR for the financial year in which you actually receive the refund. The refund principal is not taxable — only the interest component is. For example, if you receive &rupee;50,000 refund with &rupee;1,500 interest, only &rupee;1,500 is added to your taxable income.

Related Calculators

Add This Calculator to Your Website

Embed the sum.money Income Tax Refund Calculator on your site. Free, responsive, always up-to-date.

<iframe src="https://sum.money/embed/in/income-tax-refund-calculator" width="100%" height="600"></iframe>