Rs. 12,000 Monthly Income Gujarat Man Stunned by Rs. 36 Crore Income Tax Notice

A humble family in Ratanpur village of Idar area of Gujarat’s Sabarkantha district was left dumbfounded when the Income Tax department sent a notice for Rs. 36 crore as outstanding taxes to the sole earning member, who earns a monthly income of a mere Rs. 12,000.

The man, working for a private firm in Ahmedabad, was thrust into the midst of a huge tax scandal when a notice was issued to his home. In the notice, it was mentioned that a firm named ‘JK Enterprise’ registered in his name had made financial transactions of several crores of rupees.

The family, who lived in a modest house built with the assistance of Rs. 36,000 under the government’s Indira Awas Yojana, were perplexed by the allegations. They have asserted that they know nothing about such a company or business activity against them.

As per the Income Tax notice, data received by the Central Goods and Services Tax (CGST) department was that ‘JK Enterprise, ‘ having been registered in the individual’s name, has utilized Input Tax Credit (ITC) for Rs. 20.05 crore. Acting on this feedback, the department made a demand of Rs. 36 crore under provisions of the Income Tax Act relevant to this case.

The notice further asserted that the company has made crores of transactions and requested the recipient to produce documents and proof to explain the facts by April 13.

The case has drawn concerns about the increasing cases of identity fraud while making false business registrations, where innocent persons become victims.