Income Tax Department Sends Rs 3 Income Tax Demand Notice; Netizens Go Gaga on Social Media:

Income Tax Department Sends Rs 3 Income Tax Demand Notice; Netizens Go Gaga on Social Media A chartered accountant has recently shared a very strange experience upon receiving an income tax demand notice. Usually, taxpayers receive demand notices involving huge amounts. However, in his case, the income tax department raised a demand for only Rs 3 from him.

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CA Jay Matoliya shared a demand notice issued by the assessment unit of the income tax department under section 156 of the Income Tax Act, 1961. The notice was written in a very formal way and included the detailed rules, payment directions, and warnings about interest and penalties if the amount of Rs 3 was not paid on time. "If you do not pay the amount within the period specified above, you shall be liable to pay simple interest at one per cent for every month or part of a month from the date commencing after the end of the period aforesaid in accordance with section 220(2)," the notice mentioned. The notice warned that if the tax amount is not paid within the given time, an equal penalty may be levied. Additionally, the department mentioned that recovery proceedings will be initiated under the Income Tax Act. Not only this, but the notice also mentioned the option to file an appeal before the National Faceless Appeal Centre (NFAC) within 30 days. What made this incident amusing was the amount raised in the demand notice. The entire system, including digital processes and automated checks, worked to calculate a demand of just three rupees.

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"The entire machinery of Faceless Assessment, CASS algorithms, AI risk profiling, and government servers worked overtime to conclude that I owe the nation… three rupees," Matoliya wrote. The CA claimed that this notice was genuine and was officially issued to him by the Income Tax Department.

Got a demand notice from Income Tax Department🥲

The entire machinery of Faceless Assessment, CASS algorithms, AI risk profiling, and government servers worked overtime to conclude that I owe the nation… three rupees. Should I file an appeal? 👀 pic.twitter.com/multMW5OYY — Jay Matoliya 🐂 (@Jay_Matoliya) March 26, 2026