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Delhi resident pays ₹50,000 to settle ₹1 tax dispute
Costly tax dispute resolution for ₹1

Delhi resident pays ₹50,000 to settle ₹1 tax dispute

Jul 10, 2024
07:00 pm

What's the story

A Delhi resident, Apoorv Jain, has claimed to have paid a hefty fee of ₹50,000 to a chartered accountant (CA) to resolve an Income Tax dispute that ultimately amounted to only ₹1. Jain shared his experience on social media platform X (formerly Twitter), stating "Paid 50000/- fee to CA for an IT notice I received recently wherein the final disputed value turned out to be ₹1/-."

Twitter Post

Check out the user's post here

Public reaction

Social media reacts to Jain's expensive tax dispute

Jain's revelation sparked a wave of reactions from netizens. Some expressed shock at the incident, while others criticized Jain for spending such a large sum on CA fees for a seemingly minor dispute. One user commented, "The state of this department is such that nothing looks like a joke anymore," while another advised Jain, "Bro, the joke is on you. Better checkout the CA who charges 50k for anything."

Dispute details

Jain clarifies original dispute amount, criticizes system

In response to a user suggesting he should have simply paid the ₹1 if it was the initial disputed amount, Jain clarified that the original notice involved "several lakhs." He expressed his dissatisfaction with the current system, saying, "Imagine a polka-dotted world where the system is slightly more robust, the babus slightly less corrupt, the common-man slightly less scared, and in this world I might have been able to save ₹50000/-"

Notice verification

Importance of verifying income tax notices highlighted

Taxpayers may receive income tax notices from the IT department for a variety of reasons, such as discrepancies in filed ITRs, nondisclosure of high-value transactions, or requests for additional documentation. However, with recent reports of fraudulent income tax notices circulating, it is crucial for individuals to verify the authenticity of any notice through the e-filing portal before responding.