I-T Dept to refund excess interest, late fee for FY21 returns

The Income Tax (I-T) Department will refund excess amount of interest and late fee paid by taxpayers during the return filing for FY21. In a tweet, the department said that the income tax return filing software was rectified on August 1, 2021 to remove the error due to incorrect computation of interest u/s 234A and late fee u/s 234F.

"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," it said. The department tweeted in response to a news report.

The deadline for filing ITR for the last financial year was extended to September 30, 2021, in a bid to provide relief to taxpayers amid the pandemic.