In view of the problem in its new portal, the Income Tax Department has definitely extended the date of return to 31 December, but has not given any relief in the interest charged on delayed returns. The Income Tax Department has given clarification in this regard.
The Income Tax Department has said that it will continue to collect interest on income tax returns filed after the July 31 deadline. In this context, Income Tax Department officials say that tax payment is to be done through net banking and for this the taxpayer does not need to use the e-filing portal, which is facing problem. Therefore, taxpayers filing returns after July 31 will have to pay interest at the rate of 1 per cent every month on the outstanding tax.
Interest relief was being sought
It is noteworthy that various sections of income tax depositors were demanding amendment in the law to provide relief on interest liability for the assessment year 2021-22. In its circular dated September 9, the CBDT while extending the ITR filing and other deadlines said, the extension of dates will not be applicable to section 234A which deals with payment of interest on delay in filing of ITR. That is, taxpayers will not get any relief in interest. However, the circular states that interest relief will be provided to small taxpayers and certain senior citizens with self-assessed tax liability of less than Rs 1 lakh.
Provision of interest under these sections
There are three sections 234A, 234B and 234C in the Income Tax Act 1961, which provide for penal interest for non-payment of returns and income tax on time. There has been no change in these sections after the extension of the date of filing the return. Due to this, those filing returns after July 31 will have to pay one percent monthly penal interest on the basis of income tax deposited. However, this penal interest will be charged from those paying income tax of more than one lakh. Penal interest will not be charged from the taxpayer having lesser amount.
Increased problem due to problem in website
The increase in the dates of income tax returns has been done keeping in mind the technical flaws in the new tax filing portal. The portal, which is being managed by Infosys, has faced massive criticism from the government and taxpayers. Infosys has been asked to fix the portal by September 15. Union Finance Minister Nirmala Sitharaman recently held a meeting with Infosys Chief Executive Officer and Managing Director Salil Parekh. In this, he had expressed deep displeasure and apprised him of the concern of the government as well as the taxpayers regarding the e-filing portal.