Tax Reminder or Threat?
Moneylife Digital Team 20 September 2017
Although the government talks of treating honest taxpayers with respect, the income-tax (I-T) department, obviously, thinks differently. The easiest way for the I-T department to meet the steep tax collection target set by the finance ministry is to hustle and frighten existing taxpayers to cough up more. Many companies have just got letters from the department reminding them to pay advance tax by 15th September. But, instead of sending out a friendly reminder, the letter threatens them with penal interest as per Section 234C of the Income-tax Act for failure to pay advance tax. Did the I-T department have reason to suspect that companies are likely to dodge tax payment? No; in fact, it chose the highest tax-paying companies in Mumbai for their pay-up threat!
 
An angry businessman tells us, “I find it insulting. Nobody needs to remind us to comply; else we wouldn’t be in the top taxpayers’ list.” Also, he says, the government is unconcerned that its own economic decisions have adversely impacted his business; so he will earn less and pay less tax than last year. “No wonder, nobody feels like paying tax in India. The more you pay, the more you are harassed,” he ends. Is the government listening? 
 
Comments
Amit International
8 years ago
I have received letter on 17092018 by registered post latter dated 30082018,it's shows the efficiency of income-tax department as well as Indian post service,.department require information on advance tax paid on or before 15th June 2018. The said information is available on government portal,letter asking me to reply to concern officer in return before 12th sept 2018 about my advance tax plan for sept 2018.

Why govt spending money on stationary printing ink and registered post for such unprofessional work. We are receiving regular demand and reminders email and SMS from regular intervals.

It's harrassment to genuine tax payers by sending such letters in brown envelopes

There is no appreciation letter even after paying advance tax or annual tax payment paid on time.

As per my opinion government should stop such unprofessional activities and concentrate more on Nirav Modi and mr Vijay Mallya,
Krishnamurthy Sundararajan
9 years ago
I am pensioner and I have also received sms to pay advance tax and warning of penal tax provisions. My bank is deducting TDS on monthly Pension.
A BANERJEE
9 years ago
I think, as a retired IRS officer, the department could be a bit more sensitive and courteous in drafting its letters. After all, there was a regime of advance tax when notices used to be issued and no one took exception. May be, the next-gen language is different.
Nihar Mody
9 years ago
Were such reminders sent to Vodafone or Cairn or Reliance for that matter? We fill that by paying taxes we are committing a crime!!!!!
KMG
9 years ago
Income Tax Department should not act like a police department telling if you will nirdosh we will give you such punishment. Our tax payers are now aware of their responsibities. Income tax department must express regret for writing such letters.
Joseph Pereira
9 years ago
We ,who are senior citizens,over 65 ,also received such letters.We do not have to pay adv tax if their is no income from business or profession.They could have checked up or at least ,mentioned these issues.
Milind Nadkarni
Replied to Joseph Pereira comment 9 years ago
My 90+ year father retired in 1985 from Tata Memorial center and living on a meager ension with absolutely no income regularly gets such threatening letters in spite of he uploading his explanation and giving details of his income (pension) at the Income Tax site. There is simply no logic in the way the tax dept WAS and IS operating. Even now it appears that they do not have a common central database to update information. Extremely sorry state of affairs.
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