Income Tax Department Says Will Refund Extra Fee, Excess Amount to Taxpayers

Income Tax Returns: Taxpayers, here is a crucial update for you. Any excess amount or late fee charged by the new Income Tax portal for filing income tax return (ITR) for the financial year 2020-21 will be refunded to you. This was announced by the Income Tax Department. Due to the COVID pandemic, the Income Tax department has extended the deadline for filing ITR to September 30 from July 31. However, many taxpayers registered complaint that they were charged excess interest and late fee for filing ITR after July 31

Looking at the complaints of the taxpayers, the Income Tax department has rectified the glitch in the ITR software and said, “The ITR software was rectified on 1st August, 2021 itself to remove the error due to incorrect computation of interest u/s 234A and late fee u/s 234F.”

In a latest notification, the Income Tax department urged the taxpayers to use the latest version of the ITR software to file income tax applications.

In the notification, the Income Tax Department has assured the taxpayers that if anyone has submitted income tax return with incorrect interest or late fee, the amount will be refunded to them. “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,” the income tax department said in a tweet.

Recently, the Income Tax Department has launched a new income-tax e-filing portal www.incometax.gov.in in June. This portal has been designed to make your income tax return (ITR) filing journey more convenient and hassle-free. From pre-filled income tax return forms to quick refunds — the new portal of the Income Tax Department has many new features to provide a “modern and seamless experience to taxpayers”.