The good news for taxpayers is that the Income Tax Department will refund interest and late fees

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.

Also Read: Know how much money can be withdrawn from an ATM, limit the top banks

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.

Disclaimer: The above information is for general informational purposes only. We are not uploading or coping any content without relevant content owner permission, All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.