Delhi resident pays ₹50,000 to settle ₹1 tax dispute
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
Almost 3 years since Niramala Sitharaman introduced tax on PF intrest for amount exceeding 2.5 lakhs in a year.
— EngiNerd. (@mainbhiengineer) July 8, 2024
Taxing PF money itself was a cruel decision on Salaried class but the funny thing on top of that there is no system in place to calculate how much tax we have to pay.…
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.