The government has extended the deadline for filing income tax returns (ITR) due to difficulties being reported by taxpayers in filing electronic returns due to glitches in the tax portal, but taxpayers may still need to pay additional interest. . At the rate of 1 per cent per month irrespective of the filing of return over the extended period in case the balance tax payable exceeds Rs.1 lakh.
As per the clarification appended to the circular extending the dates for filing of tax returns, it is clarified that the extension of due date shall not apply in respect of the provision of section 234A. This would imply that even after filing the return over the extended period, the taxpayers would have to pay additional interest at the rate of 1 per cent per month from the original due date of filing of tax return i.e. July 31, 2021 in the case. In case of general taxpayers and those taxpayers who are required to get their accounts audited as on 31st October, if the balance amount of tax payable i.e. self-assessment tax payable exceeds Rs.1 lakh.
Though the government has extended the due date for filing returns, it has specifically provided that, notwithstanding the extension of the due date, interest at the rate of 1 per cent will have to be paid if the balance tax payable exceeds Rs 1 lakh.