Bengaluru: Pushcart seller gets Rs 53 lakh notice from Karnataka tax department

In a development that has sparked outrage among small traders, the Karnataka Commercial Tax Department has issued a notice demanding Rs 53 lakh in taxes from Somagowda, a flower vendor who sells from a pushcart in Ullal. The notice, related to transactions traced via digital payment platforms like PhonePe and Google Pay, has created ripples across the local vendor community.

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Somagowda has been selling flowers for over a decade using a small pushcart. According to him, this is the first time he has received such a hefty tax notice, despite operating on a modest scale. The initial notice was issued a month ago, and now a second notice has reportedly been sent via WhatsApp, demanding Rs 10 lakh in taxes for the financial year 2023-24 alone.

Authorities claim that over the years, the vendor has had digital transactions worth significant amounts: Rs 17 lakh in 2021, Rs 30 lakh in 2018, Rs 53 lakh in 2023, and Rs 5 lakh in 2024. Based on these records, the department has calculated tax dues and issued the notice.

Somagowda, visibly distraught, expressed his helplessness: “If they think I earn Rs 10 lakh a year, how can they say I have to pay Rs 50 lakh in tax? I'm just a pushcart vendor.” The issue has now sparked protests among other traders in Ullal Main Road, many of whom have started discouraging UPI payments and displaying signs reading, "No UPI, Only Cash”.

Local vendors are tearing off UPI stickers from their stalls and demanding that customers pay in cash to avoid falling under the radar of the tax authorities. Many feel this is harassment of small-scale businesses struggling to survive post-pandemic.