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 This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

Pakistanis get scared about attack by India after seeing their own Air Force fighter jets flying over civilian areas

Several people posted on social media that India has dropped bombs over Sialkot in Pakistan

Congress deletes video where Rahul Gandhi was seen dancing shortly after the Pulwama attack

After Congress' lies against the Prime Minister were exposed, Congress proceeded to delete the tweet where Rahul Gandhi was seen dancing after the Pulwama terror attack.
Locals even pelted stones at injured jawans

Pulwama attack: Women, children in Kashmir ferried expensive military grade RDX in small quantities for months

The trigger for the explosive was manufactured locally and that ammonium nitrate was used as an oxidizer in the RDX explosive. The military grade RDX was obtained from Pakistan and the device was assembled around 10 km from the blast site.

This is why Neena Gupta wants no one to wish Pritish Nandy even a Happy Birthday

Pritish Nandy 'stole' Masaba's birth certificate and printed in his magazine without Neena Gupta's permission
Image Source: Twitter

Fearing India’s retaliation, Pakistan cancels leaves of its troops, uses flares to light up night sky to see movement of Indian troops

Pakistani administration has asked people to stay in underground bunkers, which could protect them from shelling or any form of attacks which could come from the other side of the border.
Pakistan's government acts as a subordinate of its military and Islamic fundamentalists

It appears Pakistan is scared of India: Masood Azhar’s veiled threat to Imran Khan against any govt action

Masood Azhar said in his weekly address, ''Pakistan's response to Indian Prime Minister Narendra Modi's threats post Pulwama was rather lukewarm and lacklustre. It appears Pakistan is scared of India.''

After Ajaz Ashraf of Caravan reduced martyrs to their caste, he shouldn’t play victim when he is reduced to his religion

In his report, Ajaz Ashraf says quite clearly that he called the martyrs of the family to in their moment of unimaginable tragedy to inquire about their caste.

Waters of 3 rivers flowing into Pakistan will be diverted to Yamuna as per Indus Water Treaty: Nitin Gadkari

Nitin Gadkari had said that dams and other developmental projects are being conceptualised on the 3 rivers will choke Pakistan’s water supply

Congress workers used to do booth capturing for me and my father when there was no EVM : Congress leader Kirti Azad

Kirti Azad was suspended from the Bharatiya Janata Party in 2015 after he accused senior BJP leader Arun Jaitley of Corruption.
Image Source: The Week

Mandya: Actor-turned-politician Prakash Raj attends funeral of Pulwama martyr, villagers expose his hypocrisy towards Armed Forces

Prakash Raj, a left wing ideologue, who is often known for joining hands with the left-liberals to express their hate towards Hindus and the BJP, has plans to contest in the upcoming elections from Bengaluru Central Lok Sabha constituency.

Latest articles

Connect with us

138,583FansLike
111,458FollowersFollow
23,553SubscribersSubscribe

Don't miss these