India's income tax collection efforts took a hit this week when it was discovered that an automated data flow somehow added two more zeros to the value of taxable transactions, resulting in the issuance of notices to individuals who wrongly overstated their tax liabilities.
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The error meant that 100 INR ($1.20) became 10,000 INR ($120). The hundredfold step saw many people who shouldn't owe tax sent a bill – with just five days' notice to pay.
India requires those whose annual income exceeds INR 10,000 to pay tax in advance, with a deadline of March 15, 2024. Late payment interest is charged for late advance payments.
The pipe therefore frightened many.
