Income Tax Admits Incorrect Late Fees; Tax-Payers Will Get Refund For Incorrect Charges
Several taxpayers who filed their income tax return (ITR) for FY2020-21 after 31 July were charged interest and late fees.
The Last Date For Filing An ITR
In view of the COVID-19 pandemic relief, the deadline for reporting ITR for the previous financial year has been extended from July 31 to September 30, 2021.
“The due date of filing ITR for FY2020-21 (AY 2021-22) is 30th September 2021 (extended from 31st July). Therefore, late filing fees and interest u/s 234A up to a certain extent shall be applicable only after the due date which is 30th September 2021. However, due to a technical glitch on the Income-tax portal, late filing fees & excess interest were levied in few cases filed after 31st July which is incorrect, so the department will issue a refund of late fees & excess interest paid by the taxpayers,”
– Abhishek Soni, Co-Founder & CEO, Tax2win
Technical Glitch On The Income-Tax Portal
The government stated that the ITR software issue was resolved on August 1, 2021. The Income tax department has announced that is ready to refund the taxpayers for excess interest and late fees paid due to technical glich in filing ITRs for 2020-21.
“Despite the extension, some taxpayers who filed their income tax returns after July 31 were falsely charged late filing fees and interest due to the system issue. On Wednesday, the income tax department announced to refund the excess late fees and the interest mistakenly charged from the taxpayers, if any. The department confirmed that those taxpayers who were charged such incorrect late filing fees under section 234F and interest under section 234A while filing the return would get the refund of the excess amount after correct calculation while processing the return at the Central Processing Unit (CPC), Bangalore,”
Archit Gupta, Founder and CEO – Clear
The most recent version of the ITR Utility must be used by the taxpayer according to the department.