The last date for filing the Income Tax Returns was July 31. Although there were demands to extend the date further by some taxpayers, the IT department did not extend the date. From the IT website's failure to other reasons, the ITR returns have been a topic of discussion for many years.
'Curious Case of Taxation'
An X user, who claims to be a Chartered Accountant by profession, took to his X account to share an instance of the taxation system and its workings.
The user started the post by saying, "Curious Case of Indian Taxation!!"
He then goes on to tell the tale of another taxpayer whose mother had taken ill, as a result of which the person could not pay or file the ITR on time.
He enumerated the details of the person's earnings and said, "A salaried employee came for ITR filing after the due date, as his mother was ill during later part of July. Salary -8.93 Lacs Standard Dedcution-0.50 Lacs Home Loan Int- 2 lacs 80C Deduction-1.50 Lacs Total Income - 4.93 Lacs".
The user further claimed, "No TDS deducted as proofs of dedcution were submitted to employer. Assessee was prepared to pay Late fee of Rs 1,000."
But, given the existence of two distinct systems or regimes, the taxpayer got stuck in limbo, could not file in the old regime, and had to adopt the new regime by default. |
The Limbo Of New Regime
But, given the existence of two distinct systems or regimes, the taxpayer got stuck in limbo, could not file in the old regime, and had to adopt the new regime by default.
As a result of this, the delay in filing the tax cost the person a little bit more than what was initially was supposed to happen. According to the user, the person in question ended up paying Rs 50,380. This included a late fee of Rs 5000, int of Rs 4,506, and a tax of Rs 40872.
The X user deemed the system to be too harsh, and enquired whether it was fair to impose such a huge amount of money in penalty for a delay of 10 days. The user said, Isn't it too harsh!!, From 0 Tax to Rs. 50380, Only due to the reason that he is filing ITR with a delay of 10 Days."
He further added, "Punishment in form of Late fee of Rs. 1k/5K is fine but above consequence is brutal."
He further, by tagging the finance minister, pleaded over giving a window and for opting the old scheme to non-audited assessees.
