Late submitting price charged regardless of ITR date extension? File rectification request

Several people who filed their returns after 31 July have been charged a late submitting price of ₹5,000 beneath Section 234F of the Income Tax Act, 1961. The penalty has been charged erroneously because the due date for submitting returns for people has been prolonged to 30 September.

Multiple technical faults have emerged within the new earnings tax portal launched on 7 June together with the faulty penalty. For such people, specialists suggest submitting a rectification request on-line. However this ought to be accomplished after such requests are enabled by the brand new earnings tax portal, they added.

“The due date for individuals not subject to audit has been extended from 31st July to 30th September 2021. If due to an error in the system, you have been charged a late filing fee of ₹5,000 under Section 234F, you should file a rectification request for the return online. This can be filed up to 4 years from the date of the assessment order or intimation. On a practical level, the new portal is not currently accepting rectification requests. Hence you should wait until the glitch is fixed and then file the rectification application,” stated Gautam Nayak, Partner, CNK & Associates LLP.

However, taxpayers ought to notice that although the due date for submitting returns has been prolonged, the date for fee of taxes has not been prolonged. For people liable to advance tax (typically these with a tax legal responsibility of greater than ₹10,000), tax needs to be paid earlier than 15 March in 4 instalments. Any steadiness tax left to be paid after these dates should be paid earlier than the due date of submitting the earnings tax return. Hence, it’s best to calculate and pay all taxes due on the earliest. Failure to take action can appeal to curiosity in addition to penalty.

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