As the deadline to file the income tax returns nears, there is a mad rush on the new I-T web portal. Recently, the I-T department postponed the last date to file the ITR to September 30. However, those who tried to file the ITR after July 31 have been fined for late filing despite the extension.

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The late filing fee, which was introduced on April 1, 2017, is being charged under Section 234, which says that taxpayers can be penalised with a maximum sum of Rs 10,000 if they fail to file their ITR before the deadline.

If the income of the taxpayer does not exceed Rs 5 lakh, then they are liable for a penalty of Rs 1,000; it is Rs 5,000 in case it does. The section applies equally to all kinds of taxpayers -- individual, BOI, AOP, HUF, etc.

The government’s decision to extend the deadline to file the ITR came into effect last month. However, it seems that the web portal of the income tax department has not been updated with the latest changes. Due to this, people are being penalised despite filing the ITR way before the deadline.

The taxpayers took to social media to voice the concerns and tagged Finance Minister Nirmala Sitharaman, Ministry of Finance, and Infosys and the Income Tax Department in their posts.

In 2019, Infosys was given the contract to develop a cutting-edge website portal to file income tax returns. However, the website, which was launched on June 7, has had a bumpy ride since.

(Edited by : Shoma Bhattacharjee)