According to a new notification of the Income Tax Department, taxpayers will now receive a refund of an excess amount of interest and late fee paid during the ITR for FY21 because there was an error at the end of the income tax department while calculating the tax and determining the last date of filing the ITR.
The Income Tax Department took to Twitter to announce this news and said that the Income Tax Return (ITR) software was rectified on August 1 that removed the error which was causing incorrect computation of interest u/s 234A and late fee u/s 234F which may have given many a sense of relief.
The tweet said, "Taxpayers have been advised to use the latest version of the ITR preparation software or file online. If, by any chance, someone has already submitted the ITR with such incorrect interest or late fee, the same will be correctly calculated while processing at CPC-ITR and the excess amount paid, if any, will be refunded in the normal course." The tweet was a response to a report posted by a leading business channel.
Last year, the deadline for filing the income tax return was extended by a month till September 30, to provide relief to the taxpayers who suffered during the coronavirus pandemic the second wave in India.
