Income Tax Notice
The Income Tax Department has issued a tax notice of over Rs 2 crore to a poor labourer. Rajeev Verma, who worked as a laborer for an oil trader for Rs 10 thousand per month, has received a notice to pay tax of Rs 2 crore 3 thousand 308. The notice also imposed a fine of Rs 67 lakh, which was asked to be paid within 2 days. This case is from Gaya district of Bihar.
Key Points from the Case
• Low Income: The labour’s monthly income is only Rs 10,000.
• Large Notice: The Income Tax Department has issued a notice for Rs 2.03 crore.
• FD Withdrawal: The only significant transaction was a Rs 2 lakh FD withdrawal.
• Lack of Awareness: The labour was unaware of income tax filing requirements.
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It is revealed that Rajeev has never filed an income tax return. They say that they were not even aware of filing returns with such low income. In 2015 when Rajiv made an FD of Rs 2 lakh in Corporation Bank. He broke this FD in 2016 due to necessity.
After this he did not do any big business. But suddenly the income tax department has increased their problems by sending a tax notice of 2 crore 3 thousand 308 rupees. The Income Tax department has alleged that Rajiv had made an FD of Rs 2 lakh in 2015-16, on which he has not yet paid tax.
A fixed deposit of Rs 2 lakh was made in Corporation Bank on 22 January 2015, but he withdrew the money on 16 August 2016 when the need arose. Rajeev Verma said.
Rajeev was confused after receiving the notice from the Income Tax Department. He could not go to work for the last 4 days. Frustrated, he approached the Income Tax Department office in Gaya, where he was told to go to Patna.
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This case has once again exposed the negligence of the government system. A poor man, whose income is very low, was sent a tax notice of more than 2 crores. It is important to see what happens next in this case and if Rajiv gets justice.
Next Steps for the Labour
• Seek Legal Counsel: Consulting with a tax lawyer can provide expert guidance and help navigate the complex legal process.
• File a Response: The labour should file a detailed response to the notice, explaining his financial situation and providing evidence to support his claims.
• Request an Audit: If necessary, the labour can request an audit to verify the accuracy of the assessment.
• File a Complaint: If the issue remains unresolved, filing a complaint with higher authorities or the ombudsman can be considered.
Implications for the Government
• System Improvement: This case highlights the need for better data verification and quality control measures within the tax department.
• Public Awareness: Increased public awareness campaigns about income tax filing requirements, especially for low-income individuals, can help prevent such misunderstandings.
• Accountability: The government should ensure accountability and transparency in the tax assessment process to prevent cases of harassment or injustice.
Conclusion
The case of the Bihari labour facing a hefty income tax notice raises serious concerns about the effectiveness and fairness of the tax system. While more information is needed to fully understand the circumstances, it serves as a reminder of the potential challenges faced by individuals, especially those with limited financial knowledge or resources.
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