Labourer from Bihar earning Rs 10,000 per month gets Rs 2 crore tax notice

IT Department’s error: The life of Rajiv Kumar, a labourer from Bihar who lives in the Kotwali Police Station Area in Bihar’s Gaya turned upside down when he received a tax notice of over Rs 2 crore with a monthly income of Rs 10,000 only. The case of negligence from the Income Tax Department has deeply worried Kumar's family, according to the reports. 

The reports suggest that Rajiv has been visiting the Income Tax Department again and again after he received the notice but no progress has been made to retract the notice. Rajiv said that even if he continues to work as a labourer for the rest of his life, he would not be able to earn the amount stated in the notice. 

“I made a fixed deposit of Rs 2 lakh at Corporation Bank in Gaya branch, but withdrew it before maturity on August 16, 2016,” said Kumar. 

When Rajiv approached the Income Tax Department, he was advised to file an appeal, as the error might be technical in nature. He was further informed that if the issue was determined to be a mistake, it could be corrected through the appeal process. 

Rajiv has been instructed to pay a penalty of Rs 67 lakh within two days. Expressing his confusion, he remarked, "I don’t even understand what income tax is. How can someone earning Rs 10,000 a month be expected to file a return?"