Taxpayers ALERT: IT REFUND worth Rs 47,318 cr issued between April and August; charged excess interest, late fee? Income Tax REFUND coming soon for you too

The Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance, has issued refunds of over Rs. 47,318 crore to more than 22.61 lakh taxpayers between April 1, 2021 to August 9, 2021, said Income Tax India on Saturday. 

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"Income tax refunds of Rs. 14,241 crore have been issued in 21,38,375 cases & corporate tax refunds of Rs. 33,078 crore have been issued in 1,22,511 cases," said the IT dpartment. 

Earlier, the news agency PTI has reported the Income Tax Department saying that it will refund the excess interest and late fee paid by taxpayers due to software error while filing ITR for 2020-21. The last date for filing ITR for last financial year has been extended till September 30, 2021, from July 31 to give taxpayers compliance relief during the pandemic. 

CBDT issues refunds of over Rs. 47,318 crore to more than 22.61 lakh taxpayers between 1st April, 2021 to 09th August, 2021. Income tax refunds of Rs. 14,241 crore have been issued in 21,38,375 cases & corporate tax refunds of Rs. 33,078 crore have been issued in 1,22,511 cases.

— Income Tax India (@IncomeTaxIndia) August 14, 2021

However, some taxpayers complained that interest and late fee was charged while fil‌ing income tax return (ITR) after July 31, 2021. 

The department in a tweet said the ITR software was rectified on August 1 itself to remove the error due to incorrect computation of interest under section 234A and late fee under section 234F of Income Tax Act. 

"Taxpayers have been advised to use the latest version of the ITR preparation software or file online. If, by any chance, someone has already submitted the ITR with such incorrect interest or late fee, the same will be correctly calculated while processing at CPC-ITR and the excess amount paid, if any, will be refunded in the normal course," the I-T department tweeted. 

The deadline for filing ITR for the last financial year was extended to September 30, 2021, in a bid to provide relief to taxpayers amid the pandemic.