Is the Income Tax Portal levying late fees for filing ITR despite the due date extension?

CS Lalit Rajput , Last updated: 12 August 2021
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The tax department extended the return filing deadline for individual taxpayers for the Financial Year 2020-21 (Assessment Year 2021-22) to September 30, 2021, in light of the COVID-19 second wave. The government had given multiple such extensions to taxpayers last year also, considering the hardship caused by covid-19. However, many taxpayers are complaining that the income tax portal is levying a late filing fee even when they filed their returns in the past few days. Tax filers are taking the social media route and requesting the income tax department for removing the late-filing fee from the server.

According to Income tax rules, if a person is required to furnish a return of income but fails to do so within the time prescribed, he or she will have to pay interest on the tax due. Further, as per section 234F, late-filing fees of Rs. 5,000 shall be payable for a belated return. However, the amount of late-filing fees to be paid shall be Rs. 1,000, if the total income of the person does not exceed Rs 5 lakh.

Is the Income Tax Portal levying late fees for filing ITR despite the due date extension

The fine is levied based on section 234F of the Income Tax Act. As per the section 234F, tax payers must pay a penalty for delay in filing Income Tax Returns.

The new portal was launched on June 7 with an aim to make it taxpayer-friendly. But since its launch users have been complaining of technical issues. Earlier chartered accountants complaint that taxpayers are unable to view past e-filed returns and many features continued to be marked coming soon.

Crux

For the assessment year 2021-22, the tax website is levying a fine of Rs. 5000 on returns fined after July 31. The tax department extended the return filing deadline for individual taxpayers for the financial year 2020-21 (assessment year 2021-22) to September 30, 2021, in light of the COVID-19. No relief shall be provided from the interest chargeable under Section 234A if the tax liability exceeds Rs.1 lakh.

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