“Hnogers for being honest?”

A Reddit user, who knows that he is a sincere taxpayer in the software industry in Bangaluru for 21 years, claimed harassment by the income tax official after his tax approval was chosen to check. The user claims that he has provided income tax declarations hard and pay taxes on both salaries and capital gains, only to face a huge penalty due to the alleged misinterpretation of the MF’s Joint Investment Fund transactions.

The taxpayer stated that the evaluation official questioned the source of their investments in MF, despite clear explanations that the money that arose from salary profits and long -term stock market investments. Even after submitting support documents – including bank data, Zerodha Trade Records, and Bedger – the officer is said to have failed to understand transactions and impose a penalty under Article 271AAC (1), where he is dealt with investments as an incomplete income.

Article 271AC (1) of the 1961 Income Tax Law relates to the penalties imposed on taxpayers to obtain unimportant income that falls under specific categories. The punishment under this section is mandatory and cannot be waived by the evaluation employee. However, taxpayers are entitled to appeal against the punishment decisions before the higher authorities such as the Income Tax Commissioner (Appeal) and the ITAT Appeals Court.

By expressing frustration, the Reddit user wrote, “Every young child today realizes that no one can invest in MFS via the Internet without money coming from a valued, valuable bank account using PAN. It is impossible to invest until one rupee without appropriate verification.”

The user also pointed out that the officer did not review the 21 -year -old tax payment date, and did not verify how investments are made through legitimate sources. Instead, the audit focused on the processing of uniform payments – a common feature in the Zerodha coin, where multiple MF purchases are made through one treatment – as unspecified funds.

Although the Legal Accountant of Tax Calmegers (CA) provides a clear collapse, the officer claims that the explanations, the imposition of penalties, and the misplaced financial records. The Reddit user also claimed that a virtual hearing was scheduled, but it has never received the required login details. Despite the renovation request, the penalty order was passed without allowing them to file their case.

The user asked about the fairness of the tax system, as the compatible taxpayers face harassment while contributing to “39 % of their tax salaries”. They highlighted the weak infrastructure and daily conflicts, saying: “All we get is 45 minutes of traffic jams to reach ORR from my home in Bellandor, Bangalore, broken, luxurious roads.”

From frustration with this ordeal, the taxpayer admitted that they are now regretting their decision to stay in India, despite multiple opportunities to move abroad.

The taxpayer also claimed to deny a fair opportunity to defend the self. Redditor applied for a virtual hearing, but although email received an appointment, the password has never been sent to join the meeting. Even after submitting a complaint and requesting a reschedule, the penalty order was passed without allowing them to file the case.

This post sparked a discussion among Reddit users, where many similar experiences participate in tax audit and bureaucratic efficiency. Some users noticed that there are an increasing number of cases where honest taxpayers face scrutiny while the big stumbling blocks.