ITR due date extension: Will you get interest relief on payment of tax during the extended period?

The federal government has introduced extension within the numerous tax associated compliance dates, together with the due date of submitting Earnings Tax Return.

As a result of disruption in financial and monetary actions after the lockdowns and different restrictions imposed to counter the second Covid wave, the federal government has introduced extension within the numerous tax associated compliance dates, together with the due date of submitting Earnings Tax Return (ITR).

As an alternative of July 31, 2021, the due date for submitting ITR for the Evaluation 12 months (AY) 2021-22 will now be September 30, 2021.

“The Authorities has vide Round No. 9 of 2021 F. NO.225/49/2021-ITA-II dated twentieth Could 2021 offered leisure close to due dates of submitting of Earnings Tax returns contemplating the continued extreme pandemic state of affairs within the nation. In accordance with the identical, the due date for furnishing of Earnings Tax return for AY 2021-22 by individuals (apart from firm) not topic to any audit has been prolonged from July 31, 2021 to September 30, 2021. Equally, the due date for furnishing of Earnings Tax return for AY 2021-22 by corporations, individuals who’re topic to any audit and companions of a partnership agency which is liable to audit has been prolonged from October 31, 2021 to November 30, 2021,” stated Dr. Suresh Surana, founder, RSM India.

What would be the affect of the extension within the due date of submitting ITR to September 30 on curiosity on tax payable?

“Part 234A of the Earnings Tax Act, 1961 (‘The IT Act’) gives for levy of curiosity on any unpaid quantity of tax legal responsibility if the return just isn’t furnished inside the due date u/s 139(1) of the IT Act. It’s pertinent to notice that leisure with respect to Curiosity u/s 234A which is charged @ 1 per cent monthly for each month or a part of a month thereof after the unique due date of submitting ITR of the IT Act would solely be accessible in case the self evaluation tax legal responsibility (after offering for TDS, advance tax, and many others.) doesn’t exceed Rs 1 lakh. Accordingly, no aid with respect to Part 234A could be offered the place the self evaluation tax legal responsibility exceeds Rs 1 lakh. Thus, it turns into necessary for taxpayers whose self evaluation tax legal responsibility exceeds Rs 1 lakh to pay the tax dues to file their returns earlier than the unique due date to keep away from levying of curiosity u/s 234A,” stated Dr. Surana.

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So, even in case you can’t file your return of revenue early as a consequence of need of required paperwork, don’t delay cost of tax, if there’s some due for AY 2021-22 as there might be no aid on curiosity on tax payable.

Will there be any aid for senior residents and people beneath 60 years of age?

“In case of any resident senior citizen i.e. aged 60 years or above not deriving any Earnings and Features from Enterprise and Occupation, there is no such thing as a obligatory requirement to pay any advance tax and so they pays all the tax legal responsibility by means of self evaluation tax. Thus, any tax paid by such senior resident particular person inside the due date offered within the Act i.e. July 31, 2021 (with out extension beneath this Round), shall be deemed to be the advance tax and deducted whereas computing the restrict of Self evaluation tax of Rs 1 lakh. Nevertheless, such aid doesn’t apply for people beneath 60 years of age,” stated Dr. Surana.

So, even for senior residents, there is no such thing as a aid in curiosity on tax payable through the interval between the unique due date i.e. July 31, 2021 and the prolonged due date i.e. September 30, 2021.