A Reddit user, who has been identified as an honest taxpayer working in the 21st Bengaluru software industry, allegedly harassed by the income tax officer after their tax return was raised for a review. The customer claims that he has filed a valuable income tax and paid taxes on both salaries and capital gains, only to face a great deal for the alleged misinterpretation of the transactions of their joint fund (MF).
The taxpayer said the assessment officer called into question the source of their investments in the MoF, despite clear explanations that the funds came from earning wages and long -term investment in the stock market. Even after the submission of associated documents – including banking reports, Zeroda and Book Trade records – the officer reportedly failed to understand transactions and imposed a penalty under Article 271AAK (1), treating investments as invaluable income.
Section 271AAC (1) of the Profit Tax Act, 1961, refers to penalties imposed on taxpayers for insufficient notification income that falls into specific categories. The punishment according to this part is mandatory and cannot abandon the assessment officer. However, taxpayers have the right to appeal against penalties for higher authorities, such as the income tax commissioner (complaints) and the Appeals Tax Tribunal (IT).
Expressing frustration, the Reddit user wrote: “Every little child today understands that no one can invest in MFS online, without the money coming from an authenticated bank account registered with the use of Pan.
The user also noted that the official did not consider their 21-year tax history, nor did he check how investments were made through legitimate sources. Instead, the review focused on treating consolidated payments – the usual feature of the Zeroda coin, where more MF purchases are made through one transaction – as unexplained money.
Despite the authorized taxpayer accountant (California) providing a clear malfunction, the official allegedly ignored the explanations and imposed penalties, misinterpreting the financial records. The Reddit user also claims that a virtual hearing has been scheduled, but they have never received the necessary login details. Although they demanded rescheduling, the penalty order was taken without allowing them to present their case.
The user questioned the fairness of the tax system, where harmonized taxpayers face harassment while contributing to “39% of their tax salary”. They highlighted the poor infrastructure and daily fights, stating: “Everything we get are 45-minute traffic jams just to get to the Ortho of my home in Belandur, Bangalore and broken, spending roads.”
Frustrated by trouble, the taxpayer has admitted that they are now sorry for their decision to stay in India, despite multiple opportunities to move abroad.
The taxpayer also demanded a fair opportunity to defend himself. Redditor applied for a virtual debate, but despite receiving a meeting -the password to join the meeting was never sent. Even after filing a complaint and demanded reschedulence, the penalty order was taken without allowing them to present the case.
The post has sparked a debate among Reddit users, with many sharing similar experiences on tax control and bureaucratic inefficiency. Some users have noticed that there are more cases where honest taxpayers face a review, while large non -payers often go unpunished.
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