Stox N Tax

Why You Should Never Trust Your CA Blindly?

Table of Contents

  1. Introduction: The Myth of the All-Knowing CA
  2. Real Case #1: The Missed Deduction That Cost ₹85,000
  3. Real Case #2: A GST Notice That Could’ve Been Avoided
  4. Real Case #3: Wrong ITR Filing = Loan Rejection
  5. Why It Happens: Overworked, Underpaid, or Just Careless?
  6. What You Can Do: How to Work with Your CA, Not Just Through Them
  7. Conclusion: Empowered Clients = Fewer Regrets
  8. FAQ

1. Introduction: The Myth of the All-Knowing CA

Chartered Accountants are widely respected — but blind trust can be expensive. Most CAs manage hundreds of clients, and one slip-up in your file can mean lost refunds, tax notices, or worse. And let’s face it: most salaried people don’t even read their own ITR before signing it.

2. Real Case #1: The Missed Deduction That Cost ₹85,000

A Bengaluru techie found out a year later that his CA had missed claiming Section 80CCD(1B) NPS deduction. Refund lost. Too late to revise.
Lesson: Always cross-check your deductions before e-filing.

3. Real Case #2: A GST Notice That Could’ve Been Avoided

A small trader relied fully on his CA to file returns. CA mismatched GSTR-1 and 3B, didn’t reconcile with GSTR-2A. A ₹2.5 lakh demand notice followed.
Lesson: GST compliance is data-driven. Always ask for reconciliations.

4. Real Case #3: Wrong ITR Filing = Loan Rejection

A CA filed an ITR-1 for a freelancer who had multiple 26AS entries. When she applied for a loan, her income didn’t match her actual receipts. Loan rejected.
Lesson: Choose the correct ITR form + match AIS/26AS with real numbers.

5. Why It Happens: Overworked, Underpaid, or Just Careless?

  • Many CAs handle hundreds of files during peak season.
  • Low fees = low time per client = high error rates.
  • Some outsource filing to junior staff who never speak to you.

This doesn’t make them villains — but it does mean you need to be proactive.

6. What You Can Do: Work With Your CA, Not Just Through Them

  • Ask for draft returns and verify key sections.
  • Check 26AS + AIS yourself — they’re available to you too.
  • Ask for a breakup of capital gains, deductions, and refunds.
  • If it’s GST, get a monthly summary of 1/3B/2A.

7. Conclusion: Empowered Clients = Fewer Regrets

A good CA is a blessing. A blind client is a liability. The best results come when you treat your taxes like your own responsibility — not just a file to outsource.

8. FAQ

Q. Are all CAs careless?
Not at all. Most are hardworking and skilled. But they’re also human. Errors happen.

Q. Should I file my own returns?
If your income is simple and you understand the basics — yes, try once. Else, co-pilot with your CA.

Q. What if my CA doesn’t explain things?
You have every right to ask questions. If they resist — switch!

Mail us at stoxntaxblog@gmail.com

Leave a comment

Timeline of events