The Income Tax Department on Wednesday said it would refund interest and delay fees collected by taxpayers when filing returns for 2020-21 due to software defects. The last date for filing income tax returns for the previous financial year has been extended from July 31, 2021 to September 30, 2021, in order to provide taxpayer compliance relief during the epidemic. However, some taxpayers have complained that interest and late fees have been charged from income tax returns filed after July 31, 2021.
The department wrote on Twitter that the ITR software was corrected on August 1 to remove the error related to the miscalculation of interest and late fees under section 234A of the Income Tax Act.
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Written by the Income Tax Department, taxpayers are advised to use the latest version of the file in ITR software or online. Either way, if someone has already filed an ITR with wrong interest or late fees, it will be properly accounted for when processing CPC-ITR and the excess paid will be refunded.