Rs. 30L Earner Refused to Pay ₹594 of Legitimate Tax: CA Shares his shocking Experience
The CA intends that when you are claiming your deductions, solid proof is required to substantiate the same. If you crossed the line of tax planning, then it will become an evasion. It will ultimately make you more liable to the government.
A Chartered Accountant ( CA ) has shared his experience where a high salaried taxpayer who is earning Rs. 30 lakhs per year, refused to pay a legitimate tax of Rs. 594 after claiming the deductions.
CA Sidharth Jain said that the incorrect claims and the attitude of the high-income salaried taxpayers to not to follow the system is always a threat for the income tax.
By stating the same, the CA applauded the efforts of the Income tax Department for continuous reminder on filing of the taxes.
The Chartered Accountant in practice, shared his experience though ‘X’. Tagging the income tax department, the CA said that “u started a good drive though there are good taxpayers also who are getting harassed by such messages but yes I can understand due to malpractices this needs to be done.”
A PSU employee approached the CA after receiving an income tax intimation seeking re-verification of his return.
The CA analysed the return of the PSU employee. He claims that the taxpayer had claimed multiple ineligible exemptions, including House Rent Allowance (HRA), Transport Allowance, Leave Encashment, Section 10(14) exemptions, and other reliefs totalling to nearly ₹5 lakh.
Based on these incorrect claims, the return showed a refund of ₹1.27 lakh. After rectifying the return, the tax position changed. The revised computation showed a tax payable of just ₹594, said the CA.
The CA in his X post wrote that, when this was communicated, the taxpayer’s response was “Rehne dijiye… doosron ka toh tax nahi lag raha.” The taxpayer said that “others are not paying tax either,”. He was not willing to even pay this nominal amount of the tax.
https://x.com/casidharthjain1/status/2006100978949562597?s=20
The accountant claimed that there was no tax planning. “No mutual fund investments, No fixed deposits and No genuine tax-saving instruments. The entire “tax planning” seemed to be based on incorrect claims, not lawful savings” said CA Sidharth Jain.
Through his experience, he clearly clarified the thin line of tax planning and tax evasion gets crossed. The CA intends that when you are claiming your deductions, solid proof is required to substantiate the same. If you crossed the line of tax planning, then it will become an evasion. It will ultimately make you more liable to the government.
“As professionals, we may lose clients - but we cannot compromise on compliance”, which is a true and dedicated words by CA Sidharth Jain
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