Delhi Man Pays ₹50,000 CA Fee for ₹1 Income Tax Dispute

A Delhi resident named Apoorv Jain found himself paying a hefty ₹50,000 fee to a chartered accountant (CA) after receiving an Income Tax notice, only to discover that the disputed amount was a mere Re 1. Jain took to social media platform X to share his grievance, highlighting the absurdity of the situation.

Jain’s post quickly garnered attention, with many users expressing disbelief and sympathy.“Paid 50000/- fee to CA for a IT notice I received recently wherein the final disputed value turned out to be Re 1/-.” He further added, “I am not joking.”

Reactions to Jain’s story were mixed. Some users were shocked by the incident, while others criticized Jain for incurring such a high CA fee. One user remarked,“The state of this department is such that nothing looks like a joke anymore,” while another quipped,“Bro, the joke is on you. Better checkout the CA who charges 50k for anything,”

Criticism of the fee structure was a common theme among the comments. “₹50,000 is too much,” one person wrote, calling the fee absurd. Jain himself reflected on the inefficiencies in the system, writing, “Imagine a polka-dotted world where the system is slightly more robust, the babus slightly less corrupt, the common-man slightly less scared, and in this world I might have been able to save 50000/”

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When asked by another user about the initial amount under dispute, Jain clarified, “Several lakhs in the beginning.” This revelation suggested that the fee might have been justified at the outset, given the potentially significant amount initially in question.

Taxpayers in India can receive Income Tax notices for various reasons, including discrepancies in filed returns, failure to disclose high-value transactions, or requests for additional documentation. However, there have also been instances of fake income tax notices being sent to individuals, making it crucial for recipients to verify the authenticity of any notice through the official e-filing portal before responding.