The government may have extended the deadline for filing Income Tax returns (ITR) on account of the difficulties being reported by the taxpayers in the electronic filing of returns owing to the glitches in the Tax Portal, but taxpayers may still be required to pay additional interest at the rate of 1 percent per month despite filing the return in 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 tax returns, it has been clarified that the extension of the due date shall not be applicable in respect of the provision of section 234A. The implication of this will be that despite filing the return in an extended period, the taxpayers shall be required to pay additional interest at the rate of 1 percent per month from the original due date of filing tax return i.e. July 31, 2021 in the case of ordinary taxpayers and October 31 in the case of taxpayers who are required to get their accounts audited, in case the balance amount of tax payable i.e. self-assessment tax payable exceeds Rs 1 lakh.
Though the government has extended the due date of filing return but has specifically provided that despite the extension of due date, interest at the rate of 1 percent shall be required to be paid in case the balance tax payable exceeds Rs 1 lakh.