ITR

Income Tax Dept to refund excess interest, late fee charged due to software error while filing ITR FY21

Some taxpayers have complained that interest and late fee was charged while filing income tax return after July 31, 2021

The Income Tax Department will refund the excess interest and late fee paid by taxpayers due to software error while filing ITR for 2020-21. The last date for filing returns for last financial year has been extended till September 30 this year from July 31. However, some taxpayers complained that interest and late fee were charged while filing income tax return (ITR) after July 31, 2021.

Today, the tax department said that the ITR software was rectified on 1st August itself to remove the error due to incorrect computation of interest. It also said that 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 department wrote on Twitter.

Earlier this week, some chartered accountants said that users have complained of technical issues on the site from the very first day and that not everything has been fixed even after a week. Taxpayers are unable to view past e-filed returns and many features/ facilities continue to be marked ‘coming soon’.

Finance Minister Nirmala Sitharaman too has raised issues with new return filing software in the past. Soon after the launch of the new software, the finance minster said: “The much awaited e-filing portal 2.0 was launched last night 20:45hrs. I see in my TL grievances and glitches. Hope @Infosys & @NandanNilekani will not let down our taxpayers in the quality of service being provided. Ease in compliance for the taxpayer should be our priority.”

Replying to the tweet, Nilekani said Infosys was working to fix the glitches.

Infosys was in 2019 awarded a contract to develop the next-generation income tax filing system to reduce processing time for returns from 63 days to one day and expedite refunds.

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