Media falsely claims that 2 out of 3 chartered accountants don’t pay income tax, here is the truth

The Times of India, The Telegraph and The Pioneer misinterpreted the data regarding income tax paid by professionals, including chartered accountants. The ICAI clarifies

On 23rd October, The Times of India in an article titled “Number of taxpayers up, but salaried still bear the brunt”, it claimed that out the total qualified chartered accountants, only one in three paid their income tax. Later, The Tribune, in its editorial titled “The income tax saga”, said, “Salaried people continue to pay tax even before they receive their paycheques, but the same is not true of professionals such as doctors, chartered accountants and lawyers. Some of them sometimes forget to pay tax.” This was followed by The Pioneer, where an opinion piece by Naveen Anand, put this up as a ‘curious fact’: Out of the 2.8 lakh chartered accountants, who advise companies and individuals on tax matters, only about one-third or one lakh paid taxes.

However, the reality is far from this. The Institute of Chartered Accountants of India (ICAI) in its letters to the editors has clarified that said data was misinterpreted by them. In its letters, the ICAI explains that the Income Tax Return (ITR) Statistics presented by the Central Board of Direct Taxes (CBDT) has been presented on the basis of the type of income, type of taxpayers, etc. One such basis for analysis is “type of business” which includes data from various businesses like manufacturing sector, trade, professionals, etc.

The ICAI says that the said data is misinterpreted by the publication. The Times of India claimed that out of 2.8 lakh chartered accountants, about 1 lakh of them pay income tax.

- Advertisement - - Article resumes -

Times of India on income tax paid by professionals

The ICAI has clarified that out of total 2,69,350 members, 1,26,892 members have a certificate of practice (COP) and are either in full-time or part-time practice, i.e. their income from practice would be taxable under Income from Business and Profession head. Rest of the qualified chartered accountants are salaried, hence, their income would be taxed under the head Income from Salaries.

The ICAI clarifies that the 1,03,049 chartered accountant taxpayers mentioned by the Income Tax Department pertain to the chartered accountants who are in practice only. i.e. out of the 1,26,892 members, not the total 2,69,350.

That means, nearly 81 per cent of Chartered Accountants who are in practice and are earning income under the head business and profession are paying their taxes and not 1/3rd as mentioned by Times of India. The remaining 1,42,458 chartered accountants may have been included as individuals having a salary and/or other income.

The institute further clarified that out of the total 2,69,250 members, 2,45,507 chartered accountants have filed their income tax, i.e. nearly 91%. Of the total members, about 8,000 members are above the age of 70 years, who may or may not have filed their returns, depending on their age.

The institute further expresses disappointment at the newspapers for publishing their stories without verifying facts with the institute which has caused immense damage to the credentials of the CA profession.

You could read the letters here: [1] [2] [3]

Share and Support:
Support OpIndia by paying for content

Most read articles recently

Statue of all ironies: Pritish Nandy uses example of fake news to spread fake news

Pritish Nandy shared a fake image which was earlier shared by Youth Congress leader

West Bengal: TMC workers ‘purify’ the ground with Gangajal and cow dung after BJP holds a rally in Cooch Behar

TMC workers sprinkled Gangajal after applying cow dung on the ground where the rally was held.

Fact check: Did BJP President Amit Shah and PM Modi call Baniyas cheaters and accuse them of profiteering?

Earlier, Gujarat Chief Minister Vijay Rupani had also been accused of making a casteist remark, which turned out to be a Photoshopped image

2018 Assembly Elections: Here are the BJP internal survey numbers

The final results of all states are to be released on 11th December.
Image Source: Zee News

Sidhu knew of the opening before Imran Khan was sworn in, Kartarpur a bigger conspiracy by ISI: Captain Amarinder Singh

Pakistan General Bajwa had revealed the Kartarpur corridor news to Navjot Singh Sidhu even before Imran Khan was sworn in as their PM, Punjab CM Singh indicated “a bigger conspiracy" hatched by the Pak Army.

Uttar Pradesh: Samajwadi party leader detained after being caught on camera assaulting BJP spokesperson

Political leaders who are the so-called representatives of our country have often been seen indulging in such pettiness

Raghuram Rajan backed yet-to-be functional Krea University among 19 new institutes to get ‘Institute of Eminence’ tag

The earlier list which featured yet-to-be-functional Jio Institute was announced, the HRD ministry was mercilessly mocked
Vijay Mallya to be extradited

Big victory for India: UK court orders Vijay Mallya’s extradition who is wanted in India for a Rs. 9000 crore scam

The liquor baron, Vijay Mallya, is wanted in India in connection with an alleged scam worth Rs. 9000 crores and is to be extradited to India.

After stopping BJP’s rath yatra, West Bengal government allows Hindu-hater Bangladeshi Maulana to address meetings in the state

BJP's rath yatra banned, Bangladeshi Islamic preacher welcomed in West Bengal

25 Lakh fake beneficiaries found in Anganwadis of UP, Maharashtra and Assam

The Ministry of Women and Child Development had ordered the survey of Anganwadi Schemes after the crackdown of Assam government on ghost beneficiaries.

Latest articles

Connect with us

125,505FansLike
97,320FollowersFollow
6,057SubscribersSubscribe

Don't miss these