Income Tax Return Filing: Taxpayers May Need To Pay Interest For ITR; Details Here

Finance ITR Filing

The taxpayers may still require to pay additional interest even though the central government has extended Income Tax Return (ITR) filing last date. Taxpayers may need to pay additional interest at the rate of 1 per cent per month despite filing the return in the extended period in case the balance tax payable exceeds Rs 1 lakh, as per IANS report.

Central Board of Direct Taxes (CBDT) had announced extension of the due dates for filing of ITRs and Audit Reports for the Assessment Year (AY) 2021-22 in view of the difficulties reported by taxpayers in filing of ITRs etc, Income Tax India tweeted.

  • As per the clarification appended to the Circular extending the dates for filing tax returns, it has been stated that the extension of the due date will not be applicable in respect of provision of section 234A, as per IANS report.
  • The implication of this will be that despite filing the return in the extended period, the taxpayers will be required to pay additional interest at the rate of 1 per cent per month from the original due date of filing tax return i.e. July 31, 2021 in the case of ordinary taxpayers and October 31 in the case of taxpayers who are required to get their accounts audited, in case the balance amount of tax payable i.e. self-assessment tax payable exceeds Rs 1 lakh, IANS reported.
  • Though the government has extended the due date of filing return but has specifically provided that despite extension of due date, interest at the rate of 1 per cent must be required to be paid in case the balance tax payable exceeds Rs 1 lakh, as per IANS report.
  • Even the taxpayers who are not required to pay advance tax but have a self-assessment tax liability exceeding Rs 1,00,000 will also be required to pay interest at the rate of 1 per cent from the original due date i.e. July 31 or October 31, as the case may be, under section 234A of the Act, the IANS report says.

 

Source: india

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