The central board of direct taxes CBDT prolonged the last date for furnishing of different tax returns up to 31st Dec for the current year however it shall remain imposed the interest upon the late payments build post to 31st July which was the previously made last date.
The tax payments are to be performed via net banking and there is no requirement of practising the e-filing portal that was seemed to have undergone issues. Thus the assessee needs to pay the interest payment liability which is 1% per month on the outstanding tax for the individual who furnished the return post to 31st July. CBDT has explained the same when the industry stakeholders ask for the revisions inside the act to offer relaxation towards the interest liability for the AY 2021-22.
CBDT stated in its 9th Sept circular while prolonging the income tax return and the other due dates that “extension of dates shall not apply to Section 234A (deals with interest payment when there is a delay in filing ITR) of the I-T Act.”
But it prolonged the interest relief to the small assessee who has self-assessment tax liability less than Rs 1 lakh and the specific senior citizens stated inside the circular.
The new extension of the last date arrives in between the technical issues on the latest tax furnishing portal handled through Infosys that has been seeing extensive critique by the government along with the assessee. Infosys urged to amend the portal through 15 September.
“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 234A, where the amount of tax on total income as reduced by permissible deductions (TDS/ TCS/ Advance tax) exceeds Rs 1 lakh,” mentioned by Rakesh Nangia, chairman, Nangia Andersen.
Acknowledging the unresolved technical issues on the newly launched income tax portal the much-required relief has been provided to the assessees who were seeing the issues while fulfilling the responsibility of the compliance.
“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.”
The tax expert stated that the assessee might recognize depositing the whole tax liability despite the return might be furnished in the prolonged deadline to not laid the interest liability.
Central finance minister Nirmala Sitharaman has conducted a meet in which the managing director (MD) chief executive officer (CEO) Salil Parekh of Infosys was called. The FM has shown the disappointment faced by them and stated the glitches over the software that comes in between the software that the government and the assessee use in the e-filing of the returns.
The Ministry of finance on Wednesday clarified that the problems were pleaded in a good way. This is due to the statistics of different filings on the portal which is shown in the better results. Inside the statement, the ministry mentioned that exceeding 88.3 million assessees have been visited till Tuesday whose day-to-day average is 1.55 million in September.
The Income-tax return furnishing has been increased by 3,20,000 in September 2021. As there are nearly 11.9 million Income tax returns for the assessment year 2021-22 that have been furnished. From these, there are nearly 7.62 million assessees who use the online utility of the portal to furnish the returns.
