No relief to taxpayers on interest liability
The Central Board of Direct Taxes (CBDT) has extended various tax returns filing deadlines till December 31 this year but it will continue to levy interest on delayed payments made after July 31, the original due date.
Officials say tax payment has to be done through net banking, and the assessee doesn't need to use the e-filing portal, which has been facing glitches.
So, taxpayers have to bear the interest payment liability of 1 per cent per month on the outstanding tax for those who filed a return after July 31.
CBDT clarified this in the wake of industry stakeholders seeking amendment in the Act to provide relief on interest liability for the assessment year 2021-22.
In its September 9 circular, while extending the ITR and other deadlines, CBDT said that “extension of dates shall not apply to Section 234 A (deals with interest payment when there is a delay in filing ITR) of the I-T Act.”
However, it extended the interest relief to small taxpayers having self-assessment tax liability below ~1 lakh and
certain senior citizens, the circular said.
The latest extension of the deadline comes amid continuing technical glitches on the new tax filing portal managed by Infosys, which has been facing widespread criticism from the government and taxpayers. Infosys has been asked to rectify the portal by September 15.
“While the due date of furnishing income tax returns has been extended, no relief has been accorded to taxpayers in respect of interest levied under Section 234 A, where amount of tax on total income as reduced by permissible
deductions (TDS/ TCS/ Advance tax) exceeds ~1 lakh," said Rakesh Nangia, chairman, Nangia Andersen.
Considering the unresolved technical glitches on the newly-launched income tax portal, a much-needed relief has been granted to the taxpayers who were encountering difficulties while fulfilling the compliance obligation.
"However, notably, despite the extension, interest will continue to be levied. Therefore, one must endeavour to file the income tax return as soon as possible to avoid further accumulation of interest, he said.