ITR Deadline Extension: Can you get interest relief if you pay tax during the extended period?

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The government has announced extension on various tax-related adjustment dates, including the date for filing an Income Tax Return (ITR), due to disruption in financial and economic activities following the imposition of lock downs and other restrictions to deal with the second wave of COVID-19. The deadline to filing ITR for Assessment Year (AY) 2021-22 will be changed from July 31, 2021 to September 30, 2021.

DR. Suresh Surana, Founder, RSM India, said, “The Government has examined Circular No. 9 of F. NO.225/49/2021-ITA-II dated May 20, 2021. Dates for filing Income Tax Returns have been waived in view of the continuing epidemic in the country. Accordingly, the last date for filing income tax returns on AY 2021-22 for persons not subject to any audit has been extended from 31st July 2021 to 30th September 2021. The date for filing Income Tax Returns by companies, individuals subject to any audit, and partners of a partner firm responsible for the audit for the year 2021-22 has been extended from October 31, 2021 to November 30, 2021.”

Impact of extension on ITR due date till September 30 for taxable interest

Dr. Surana, said, “Section 234A of the Income-tax Act, 1961 provides for the collection of interest on any non-taxable amount if the return is not
paid by the due date 139(1) of the IT Act. It should be noted that after the due date for filing the ITR of the IT Act, the exemption related to
interest / S234A charged at the rate of one per cent per month for every month or part of a month will be available. Self- assessment in tax
liability (after payment of TDS, Advance Tax, etc.) should not exceed Rs1 lakh. Accordingly, self-assessment will not provide any relief
under Section 234A where the tax liability exceeds one lakh. Therefore, if the taxpayer’s self-assessment tax liability is more than Rs1 lakh,
it is important to pay the tax arrears and submit the return before the actual due date to avoid charging interest.”

Therefore, even if you are not able to file your income in advance as you do not need the required documents, do not delay in paying the tax and if you have to pay some of the AY 2021-22, you will not be relieved of the taxable interest.

Is there any relief for senior citizens and persons under 60 years of
age?

If any resident is a senior citizen i.e. 60 years of age or older, does not make a profit or gain from business or professional, they are
not required to pay tax in advance and can pay their entire tax liability through self-assessment tax. Therefore, any tax paid by such senior
resident persons on the due date given in the Act, i.e. July 31, 2021 (excluding extension under this circular), will be treated as advance tax
and deducted when calculating the self- assessment tax limit RS 1 lakh. However, such relief does not apply to persons under 60 years of
age. Therefore, even for senior citizens, there is no relief in taxable interest for the period between the actual due date, i.e. July 31, 2021
and the extended deadline. I.e. September 30, 2021.

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