Extension in ITR filing deadline does not mean relief from interest penalties

  1. Extension in ITR filing deadline does not mean relief from interest penalties

1) The last date to file income tax return for the financial year 20-21 has been extended to September 30, 2021 to provide relief to the taxpayers amid the second wave of the COVID -19 pandemic.

2) But the extension is provided in just filing of tax return, it does not provide any relief from penal interest charges which is required to be paid in case there is an outstanding tax liability Whether under self-assessment tax or advance tax.

Thus, the interest under section 234A, 234B and 234C will continue to be charged till the actual date of payment.