Income-Tax Portal Horror: Honest Taxpayer Slapped with ₹29 Lakh Fine due to Payment Glitch

A taxpayer, advised by his Chartered Accountant, attempted to pay advance income tax amounting to about ₹9.71 crore on or before the due date (15 September 2025), but encountered repeated failures when using the Income-Tax Department’s online portal. Though the bank debited the amount multiple times, the portal failed to process the payment (amounts were eventually reversed) because of technical glitches. On 16 September, after the deadline, the payment finally succeeded. However, under Section 234C of the Income Tax Act, 3% interest was automatically levied for missed deadline, resulting in a penalty of ₹29.10 lakh. The taxpayer has argued that the fault lay with the system, not with any willful default on his part. The ICAI (Institute of Chartered Accountants of India) has submitted a representation urging the government to waive penalties in such situations and ensure that deadlines be made more taxpayer friendly when portal failures occur. Protests have emerged from tax professionals and taxpayers, asking for consideration of system problems when computing interest, and for equitable relief.