Income Tax Department’s Alleged Demand for Household Withdrawal Proof Sparks X Controversy: Fact or Fake?
However, a lot of individuals are protesting against the excessive request for personal information. It is true that not everyone is able to maintain personal records of every expense
A contentious post by CA Akhil Pachori condemning the income tax annexure and requesting that taxpayers maintain a record of all withdrawals with receipts to support them under Section 142(1) of the Income Tax Act, 1961, has gone viral on the X (formerly Twitter). The said annexure states that “The following accounts or documents or information is/are sought under section 142(1) of...
A contentious post by CA Akhil Pachori condemning the income tax annexure and requesting that taxpayers maintain a record of all withdrawals with receipts to support them under Section 142(1) of the Income Tax Act, 1961, has gone viral on the X (formerly Twitter).
The said annexure states that “The following accounts or documents or information is/are sought under section 142(1) of the Income-tax Act, 1961:
1. It is seen from your submission that your household withdrawal is very low. Therefore, please give details of your family members, their profile, PAN no. and annual income.
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2. Please file details with breakup quantity and rate in respect of monthly Ration expenses including wheat flour, Rice, Spices, Oil, Gas, Electricity, clothings, Shoes, Polishes, Hair Cuts, Cosmetics, Perfumes, Social events expenses, Students Fees, Books, Clothings, Rents, Car running expenses, car insurance, Health insurance, building expenses, Building insurance, Life insurance, Gift expenses to a relatives. and others, restaurant visit expenses, get together expenses, social events expenses and similar day to day expenses.
3. Non submission of these details with breakup (and in case of other members bearing these expenses, other members the details of their income, household withdrawing may also be furnished with proof of income and expenses), will entitle this office to consider an household withdrawal of Rs. 10,00,000/- for the year under consideration.”
This post received a lot of replies accusing it of being fraudulent. Among taxpayers, the post caused controversy and anxiety. If the income tax return is not filed within the allotted period, the AO may request that the assessee file it by issuing a notice under Section 142(1). It could include a return about his or her income or another person's income for which they are required to pay taxes.
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The section stated that in order to make an assessment, the Assessing Officer may serve a notice on anyone who has filed a return under Section 115WD or Section 139, or whose time limit under Subsection (1) of Section 139 for filing the return has passed, requiring him to produce or cause to be produced the accounts or documents the Assessing Officer may require, or to provide in writing and verified in the prescribed manner information in such form and on such points or matters (including a statement of all assets and liabilities of the assessee, whether or not included in the accounts) as the Assessing Officer may require.
Compliance is still required even if a taxpayer believes the accounts or papers sought are unnecessary. The best judgment assessment under Section 144, where the income tax officer calculates the income and taxes thereon, may be the outcome if an assessee violates the provisions of Section 142.
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A fine under Section 276D, which can last up to a year, or a penalty under Section 271(1)(b), which is Rs 10,000 for each failure. The evaluation procedure may not begin if the AO is pleased with the documents, return, or supporting proof. Your filed return will be approved, and the case will be closed.
“So called notice is issued on 06/01/25 as claimed in the circulated message
Why such notice circulated on social media after passing of about 50 days.” CA GOUTAM CHAND BAID replied in the post:
Several CA’s Responded to this as being fake post pointing the grammatical mistakes and spelling mistake. CA Amit shah in his reply to the post stated that “There are many grammaticall mistakes in this. It's undoubtedly a fake
1. निमनी लिखत should be निम्न लिखित
2. दासतावेज should be दस्तावेज
3. Student fees should be Children fees
4. Many places first letter not in caps lock
5. In last line - Consider (an) household withdrawal
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Check out the X post : https://x.com/CA_AmitShah/status/1894684846888489169?t=VawHUlwZUONBdXZqiqseBQ&s=09
The majority of individuals were worried about privacy violations under article 21 of the Indian Constitution, even though other people supported the annexure. However, a lot of individuals are protesting against the excessive request for personal information. It is true that not everyone is able to maintain personal records of every expense. Yes, even if it's a challenging commitment, taxpayers may have to complete it if the law requires the receipt. The legitimacy of this annexure is still up for debate. As of yet, neither the revenue department nor the income tax department has confirmed this.
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