The Income Tax Returns (ITR) filing of non-audit cases has come to an end. Tax professionals had to endure sleepless nights, dealing with a large number of cases, navigating issues with income tax portals, and facing challenges like electricity failures caused by natural disasters such as floods. Overall, it was an extremely challenging and difficult time for them.
As for their remuneration, there is a tweet from a chartered accountant that has gone viral on social media. The tweet mentions that the chartered accountant’s friend, who has an income of 30 lakhs plus additional earnings from ESOPs, cryptocurrencies, tuition fees, etc., was charged a filing fee of Rs. 5000 by the CA. Is it too much?
The people posted their opinions both supporting and rejecting. Some claimed Rs. 5000 is too low. And some say that Rs. 5000 for 1 hour is too high. Definitely not. The fees collected by the Chartered Accountants are based on the complexity of work. The 1 hour work of an accountant is the hard work of their 10 years. Thus, paying Rs. 5000 for a year is not much as they help us to comply with income tax law in the nation.
Taxpayers must be aware of the repercussions of not filing their Income Tax Returns (ITR), submitting incorrect information, or misreporting any income. The penalties and interest for such errors can be twice or even thrice the fee charged by a Chartered Accountant.
Therefore, it is advisable to invest in hiring competent professionals to avoid income tax penalties, notices, and the complexities that may arise from managing various accounts and statements. Paying them well is worth it to avoid these potential issues and headaches.
The fee for any professionals should not be solely based on the number of hours worked; instead, it should take into account the complexity and precision required for the task during that one hour.
A friend has salary income of 30L+ & ESOPs, crypto tax, tuition fee etc.
— CA Kanan Bahl (@BahlKanan) July 30, 2023
Referred him to a practising CA for his ITR who quoted ₹5,000.
"He'll just take 1 hr. ₹5,000 is too much"
It takes him 1 hr now but he has spent 6 yrs in CA, 4 yrs in practice to do this in 1 hr.…
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