- Of late, taxpayers are facing several obstacles while filing their income tax returns for the Financial Year 2020-21
- In view of this difficulty & the severe pandemic, the Finance Ministry relaxed the due date for filing returns from 31 July 2021 to 30th September 2021
- However, no relaxation has been given for the payment of taxes. Any delay in payment of tax will result in additional interest
- The Income tax law charges different types of interest for the following defaults
- Delay in filing income tax u/s 234A
- Shortfall in depositing advance tax u/s 234B and
- Deferred payment of advance tax u/s 234C
- While the taxpayer now gets time till 30 Sept to file returns, any delay in payment of tax beyond the original due date of 31 Jul, will still attract interest u/s 234A
- This is applicable only where the pending tax dues are more than Rs. 100,000.
- 234A is a month-wise interest . So pay your taxes before 31st Aug to save 1 month of interest
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