Taxpayers alert! Incorrect late fees and interest will be refunded

The income tax department had launched a new e-filing portal on 7th June 2021, which had faced several technical issues since its launch. However, recently, the department announced that many of the errors had been addressed, and the vendor is working to fix the persisting issues. 

To offer compliance relief to the taxpayers during the pandemic, the last date for filing the income tax return for the financial year 2020-21 has already been extended from 31st July 2021 to 30th September 30, 2021.

However, some taxpayers who filed their ITR after 31st July (initial due date) complained that they were charged late filing fees and interest thereon. 

On Wednesday, the income tax department stated that it would refund the excess late fees and the interest mistakenly charged from the taxpayers due to software error while filing ITR for 2020-21. 

The department tweeted that the ITR software glitch was rectified on 1st August itself, and the incorrect computation of interest u/s 234A and late filing fees u/s 234F was fixed. 

The tweet further advised taxpayers to use the latest version of the ITR Utility (preparation software) or file online. 

The department confirmed that if such incorrect interest or late fees were levied while filing a return, the same would be correctly calculated while processing the ITR. The excess amount, if any after the correct computation, will be refunded to the taxpayers. 

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