To provide relief to the taxpayers amid the covid-19 pandemic, the government has extended till 30 September the deadline for filing income tax returns (ITR) for FY20-21.
However, this doesn’t provide relief from the penal interest charges which a taxpayer is supposed to pay in case there is an outstanding tax liability whether under self-assessment tax or advance tax. Like last year, the government has provided relief under Section 234A to taxpayers whose self-assessment tax is up to ₹1 lakh. Interest will be levied in case the tax liability of the person is more than ₹1 lakh.
Source: Mint, 23.07.2021