The Income Tax Department has revised the Income Tax Return software to eliminate the failure due to incorrect calculation of interest beneath Section 234A and late fee beneath Section 234F of the Income Tax Act, 1961.
“The ITR software was rectified on 1st Aug 2021 itself to remove the error due to incorrect computation of interest u/s 234A and late fee u/s 234F.” Taxpayers have been notified to use the new JSON version of income tax software and file online ITR, the official CBDT Department commented.
The council had specified that if through any chance someone has previously furnished the Income-tax return through the incorrect interest or late fee this shall be truly computed while processing the CPC-ITR and the excess amount furnished if any shall get refunded in the ordinary course.
For the case, the assessee fails to furnish the ITR in the given time limit then he shall be entitled to furnish the late fees for the default according to the provisions of section 234F of the Income Tax Act.
Beneath section, 234A is to be levied for the late filing of the return of the income. In the other words if the assessee files the returns of the income post to the last date provided in this concern. Beneath section 234A shall be levied. The interest is levied at 1% per month or the segment of the month. The type of interest is simple interest. Simply it stated that the assessee is subjected to furnish the simple interest at 1% per month or the part of the month for late in the furnishing of the return of the income.
