I-T Dept to refund extra curiosity, late charge collected whereas submitting returns for FY21


The Income Tax (IT) department said Wednesday it will reimburse the excess interest and late fees charged by taxpayers when filing their income tax returns (ITR) for the 2020-21 fiscal year.

In response to a news report that said many taxpayers were being charged a late fee on filing the ITR despite the latest deadline extension, IT said on Twitter: “The ITR software was closed on the 1st of calculating interest U / s 234A and late payment fee U / s 234F. Taxpayers were advised to use the latest version of the ITR creation software or to submit it online. “

The IT department had extended the deadline for filing the ITR for the last fiscal year to September 30, 2021 from July 31, in order to relieve taxpayers during the pandemic.

“If someone has already submitted the ITR with such incorrect interest or late fees, it will be calculated correctly when processed at CPC-ITR and the overpaid amount will be refunded in the normal course,” said the IT department in another tweet.

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Shailesh Kumar, partner at Nangia & Co LLP, said it is common to have errors or bugs in ITR or other e-filing utilities. After the errors / bugs are identified, the IT department releases a new version of such an e-filing utility and corrects the error.

“This is why taxpayers are advised to always check the latest e-filing utility when submitting their ITR. If errors are still found, they must be reported to the relevant authorities for the necessary resolution,” he told the PTI news agency.

The Central Board of Direct Taxes (CBDT) launched a new income tax e-filing portal in June. However, the new portal got off to a rocky start from the day it was launched, as it continued to face technical disruptions. This prompted Treasury Secretary Nirmala Sitharaman to call a meeting on June 22nd with the Infosys executives who developed the new portal.

Last month, Infosys CEO and MD Salil Parekh said the company is focused on resolving issues with the new portal in a timely manner. He said that several functionalities of the portal worked well and a large number of ITRs had been submitted through it.

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