‘Harassed for being honest?’: Bengaluru techie claims Income Tax officer slapped crores in penalty despite ‘clear records’

Reddit user, who identifies a fair taxpayer in the Bengaluru’s software industry for 21 years, has been harassed by the income tax officer after their tax return. The user claims that he has provided income tax income tax and taxes on both the salary and capital profits, only due to the alleged misinterpretation of their mutual funds (MF) transactions.

The taxpayer stated that the responsible responsible questioned the source of their MF investments, despite the simple explanations, which the funds arose from the investment of a long-term stock exchange. Even after submitting supporting documents, including bank statements, military commercial posts and integrity, according to the officer, have not been able to understand transactions and serve the punishment in the 271AAC (1) section.

The income tax act 271AAC (1) 1961 refers to the penalties for taxpayers for the reserves of income under the specific categories. The fine in this section is mandatory and cannot refuse to evaluate officers. However, taxpayers have the right to appeal the penalty decisions to higher authorities, such as income tax (applications) and income tax appeal.

Expressing disappointment, the user of Reddit wrote:

The user also noted that the officer of their 21 years of taxes did not verify how investments were made through legal sources. Instead, the inspection focused on the treatment of consolidated payments. A total feature in the Zeroda coin where multiple MF shopping is made through one transaction as an inexplicable amount.

Despite the Taxpayer’s statutory accountant (CA) clearly, the officer allegedly ignored the explanations and imposed fines, it was wrong to comment on financial records. Reddit user also claimed that the virtual court session was assigned, but they never received the required login details. Despite the transformation requirement, the fine order was transferred without allowing them to submit their work.

The user questioned the fairness of the tax system, where the corresponding taxpayers encounter harassment, while “39% of their salary” contribute. They highlighted the poor infrastructure and everyday struggle, noting.

It is disappointed with misfortune, the taxpayer admitted that they now regret their decision to stay in India, despite the many opportunities to move abroad.

The taxpayer also acknowledged that the denial of a fair opportunity to defend itself. Redditor has applied for virtual hearings, but despite the application for an appointment email, the password to connect to the meeting has never been sent. Even after filing a complaint, the fine was adopted without submitting to them without allowing them.

The post has aroused a debate among Reddit users, exchanging many experiences of tax research and bureaucratic inefficiency. Some users have said that there are a number of incidents there when honest taxpayers face inspections, while large slopes are often impunity.