Income tax department raising demand for late fees in intimation u/s 143(1) in case of revised return filed for AY 2021-22

Income tax return for AY 2020-21 had seen various extended due dates due to the pandemic and lockdown at various places and hence the due date for filing Income tax return for non audit cases were extended to January 10, 2021.

Further, the due date for filing of revised Income tax return was extended to 31.05.2021.

The next step after filing the Income tax return is that the Income tax department processes the Income tax return at Central processing centre (CPC), Bangalore and then issues intimation/ notice to the assessee, if required. The is also known as preliminary assessment.

In intimation under section 143(1), Income tax department checks whether there is any initial defect or inconsistency or clerical error in the income tax return.

People have been receiving intimation/ income tax notice under section 143(1) stating that there is a demand of Rs. 10,000 for late filing of Income tax return u/s 234F of the Income tax Act.

People are getting worried as to why this late fees is being charged when the original return as well as the revised return were within the respective due dates.

Further, the revised return cannot be filed after due date as the same was extended due date and Income tax portal will not accept revised return after the due date i.e. 31.05.2021, then how can a person file revised income tax return after due date and if one cannot file revised income tax return after due date, how can income tax department charge late fees for the same?

Thus, this clearly shows that this is some kind of processing issue on the part of Income tax department as there is 1 such issue every year in processing of Income tax return and because of which lot’s of taxpayers are getting harassed.

As of now on the new e-filing portal i.e. E-filing 2.0 there is no facility available to file rectification request and hence the taxpayers cannot even file a rectification request.

Hence, as of now the only option available as of now is to file a grievance with Income tax department to ask for rectification service request on the e-filing website or to submit grievance stating that Income tax return has not been processed correctly.

You can even book your Income tax return filing with our experts and get support to reply to such initial notice received by you*.

*if there is a mistake on our end

Disclaimer: The views presented in the above article are personal views of our team and has no legal binding. For any legal opinion consult a tax professional.

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