Income Tax Return ITR Filing Deadline for FY21 Extended to Dec 31

One of the major sources of income for the government is Income Tax, which is thereafter used to provide goods and services to citizens, fund public services. The income tax department once again extended the deadline to file an income tax return (ITR) for FY2020-21 to December 31, 2021, from September 30, due to glitches in the new taxpayer portal.

This is the second time in this financial year the Central Board of Direct Taxes (CBDT) has extended the deadline of filing ITR. Earlier the ITR is to be filed by July 31 this year was extended by two months to September 30, due to the second wave of Covid-19. And now the deadline extended till December 31. The CBDT said it is due to glitches on the new income tax portal difficulties that have been reported by taxpayers.

The new e-filing portal, www.incometax.gov.in, was launched on June 7. Many taxpayers and professionals reported experiencing glitches and difficulties during different stages of the filing process.

Note that the government has also extended the deadline of filing belated ITR by one month from the new deadline of December 31, 2021, to January 31, 2022. If the ITR is not filed by January 31, 2022, then the individual will not be able to file ITR for FY 2020-21, unless notice is issued by the income tax department.

A late filing fee of Rs 5,000 along with penal interest at the rate of 1 percent per month will be levied on the non-payment of tax dues in this case.

Earlier, several taxpayers who filed their ITR for the year 2020-21 after July 31 were charged late fees and interest, despite the deadline being extended till September 30, 2021.

After many taxpayers complained about the issue, the Income Tax Department announced that it will refund the late fees and excess interest paid by taxpayers while filing ITR for 2020-21 due to a software glitch on the income tax website.