33% more money on tax refund interest this year for income taxpayers due to ITR filing deadline extension

Taxpayers filing income tax returns (ITR) for FY 2024-25 (AY 2025-26) on September 15, 2025 can receive 33.33% more interest on their tax refunds due to the ITR filing deadline extension to September 15, 2025. While the Income Tax Department pays 0.5% monthly interest on refunds, this interest is taxable under 'Income from Other Sources,' Read below to know how this works.