A number of 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 yr 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). Subsequently, 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. Nevertheless, attributable to a technical glitch on the Revenue-tax portal, late submitting charges & extra curiosity have been levied in few instances filed after thirty-first July which is wrong, so the division will challenge a refund of late charges & extra curiosity paid by the taxpayers,” stated Abhishek Soni, Co-Founder & CEO, Tax2win
The Revenue Tax Division has stated it should refund the surplus curiosity and late charge paid by taxpayers attributable to 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 attributable to incorrect computation of curiosity underneath part 234A and late charge underneath part 234F of the Revenue Tax Act.
“Taxpayers have been suggested to make use of the newest model of the ITR preparation software program or file online. If by any probability, somebody has already submitted the ITR with such incorrect curiosity or late charge, the identical shall be appropriately calculated whereas processing at CPC-ITR and the surplus quantity paid, if any, shall be refunded within the regular course,” the I-T division tweeted.
Typically, taxpayers are required to file ITR by July 31 of any yr (except prolonged by the federal government). This yr, 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.