Income Tax Department to Refund Excess Interest, Late Fee Charged Due to Software Error

Income Tax Department to Refund Due to Software Error

The Income Tax Department on August 11, 2021 said it will refund the excess interest and late fee paid by taxpayers due to software error while filing ITR for FY 2020-21. The last date for filing ITR for last financial year has been extended till September 30, 2021, from July 31 to give taxpayers compliance relief during the pandemic.

However, some taxpayers complained that interest and late fee was charged while filling income tax return (ITR) after July 31, 2021. The department in a tweet said that the ITR software was rectified on August 1, 2021 itself to remove the error due to incorrect computation of interest under Section 234A and late fee under Section 234F of Income Tax Act.

The Income Tax Department Tweeted “Taxpayers have been advised to use the latest version of the ITR preparation software or file online. If, by any chance, someone has already submitted the ITR with such incorrect interest or late fee, the same will be correctly calculated while processing at CPC-ITR and the excess amount paid, if any, will be refunded in the normal course,”.


Knowledge Source:

Rs 99,756 Crore Disputed Tax Settled Under Vivad Se Vishwas Scheme

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