The IRS has said it will refund excess interest and late fees to taxpayers
The Income Tax Department has said it will refund all late fees and excess interest paid by taxpayers while filing returns for 2020-21 due to the software bug. The ministry announced this in a tweet.
The department had previously extended the filing deadline to September 30, 2021 from its usual July 31, 2021 deadline, due to the pandemic.
The department’s statement came in the wake of complaints from several taxpayers that interest and late fees had been charged from them when filing returns after July 31, 2021.
The department said in a tweet that the ITR software was self-corrected on Aug. 1 to remove the error resulting from an incorrect calculation of interest under Section 234A and late compensation under Section 234F of the Act. the income tax.
“Taxpayers are advised to use the latest version of the ITR preparation software or online file. If anyone happens to have already submitted the ITR with such incorrect interest or late fee, the same will be calculated correctly during processing at CPC-ITR and the any overpayment will normally be refunded,” the IT department tweeted.
