UP farmer gets 23 notices in a year to pay Rs 1.6 crore tax, all because of a bank lapse

Categories: Income Tax, News

A farmer from Uttar Pradesh’s Phaloda village received about 23 notices over the past year from the Income Tax Department, asking him to pay outstanding taxes of Rs 1.6 crore. After one whole year of constant pestering from the IT officials coupled with their visits, the department came across a documentation lapse at the bank’s end.

The farmer named Upadesh Tyagi, a resident of Phaloda village of Muzaffarnagar district, received a notice from the IT department on March 22, 2023, notifying him about his due taxes over a transaction of Rs 4 crore 6 lakh made from his account in the Kotak Mahindra Bank.

The notice said he had taxes worth Rs 1.6 crore outstanding. Tyagi was shocked to hear the amount. “Me and my family, we were utterly shocked. I am a small farmer. There is no way I can have such huge taxes outstanding against my name,” Tyagi said.

“I told the officials that I had no idea about the transaction, but they did not listen. I got them to talk to my lawyer, Kaushik. They said they cannot do anything, I will have to pay the taxes or there will be legal consequences,” he added.

Tyagi said he got frequent notices every two months, which severely affected his mental well-being. “They eventually started creating pressure on me. About two-three cars with officials arrived at my residence one day and raided my house,” he said.

“I am not sure whose fault it was. I know it was either a mistake on the department’s part or the bank’s part, or some employee may have made some mistake,” Tyagi said, adding that the authorities should ensure action and accountability in the matter.

It took him the support of a politically influential person in the area to get the matter highlighted.

“When I could find no other way, I approached the president of the Vishwa Hindu Mahasangh, Tarun Tyagi. I also asked some other farmers in my village for support. There were hundreds of us and we met Muzaffarnagar Income Tax Officer Rajneesh Rastogi, who reassured us that the problem would soon be resolved,” he said.

IT official Rajneesh Rastogi said after a year of no responses from the farmer, the department took a close look at the possible discrepancies.

“It all happened because of some incorrect details of PAN card. The bank uploaded incorrect details on the portal. The PAN that they had entered belongs to a person named Abhishek. We have taken appropriate measures and the mistake will be rectified soon,” Rastogi said.

Though Tyagi has now stopped getting notices, the physical and mental ordeal that this poor farmer went through has not been compensated.

Source from: https://www.indiatoday.in/cities/story/it-dept-asks-farmer-to-pay-16-crore-outstanding-taxes-finds-mistake-on-banks-part-a-year-later-2389813-2023-06-07


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