Income tax: Charged late price for submitting ITR? Tax division to refund quantity

Several taxpayers who filed their earnings tax return (ITR) for FY2020-21 after 31 July have been charged curiosity and late charges regardless of the extension of the deadline. The final date for submitting ITR for the final monetary 12 months has been prolonged until 30 September 2021, from July 31 to present taxpayers compliance reduction throughout the pandemic.

“The due date of submitting ITR for FY2020-21 (AY 2021-22) is thirtieth September 2021 (prolonged from thirty first July). Therefore, late submitting charges and curiosity u/s 234A as much as a sure extent shall be relevant solely after the due date which is thirtieth September 2021. However, resulting from a technical glitch on the Income-tax portal, late submitting charges & extra curiosity have been levied in few circumstances filed after thirty first July which is wrong, so the division will difficulty a refund of late charges & extra curiosity paid by the taxpayers,” stated Abhishek Soni, Co-Founder & CEO, Tax2win

The Income Tax Department has stated it should refund the surplus curiosity and late price paid by taxpayers resulting from software program error whereas submitting ITR for 2020-21.

The division in a tweet stated the ITR software program was rectified on August 1 itself to take away the error resulting from incorrect computation of curiosity underneath part 234A and late price underneath part 234F of the Income Tax Act.

“Taxpayers have been advised to use the latest version of the ITR preparation software or file online. If by any chance, someone has already submitted the ITR with such incorrect interest or late fee, the same will be correctly calculated while processing at CPC-ITR and the excess amount paid, if any, will be refunded in the normal course,” the I-T division tweeted.

Generally, taxpayers are required to file ITR by July 31 of any 12 months (until prolonged by the federal government). This 12 months, the Central Board of Direct Taxes (CBDT) has prolonged the final date for submitting ITR for FY2020-21 (AY2021-22) to September 2021 in view of the COVID-19 pandemic.

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