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CAs undercutting fees to win clients: Are practising CAs struggling?

Indian Chartered Accountant charging ₹1,500 for filing the ITR of a ₹1 crore earning client has sparked debate among Indian Chartered Accountants. While some believe CA fees are being pushed too low, others argue technology and AI have made routine tax filing easier than before.

The Finance Story by The Finance Story
Published date: 7th August, 2026
Last edited date: 7th August, 2026
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CAs undercutting fees to win clients: Are practising CAs struggling?
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  • CA Rajendra Sharma, Managing Partner at RSRS & Co, claimed he spent hours filing the ITR of a client earning over ₹1 crore.
  • But the client reportedly paid him only ₹1,500, saying: “My previous CA charged only ₹1,000. I am already overpaying you.”
  • The viral post triggered a larger conversation: Are Indian CAs undervaluing their own expertise?

CAs say the profession is being undervalued?

Several CAs on X sympathised with Sharma, calling it a reflection of the pricing pressure tax professionals face.

“This is the bitter reality of tax professionals in India. The profession has been undervalued,” said one user.

According to many CAs, the problem is that clients often see compliance work as a simple transaction instead of paying for professional judgement.

Their argument:

  • A CA is not just filling forms.
  • They are responsible for accuracy, compliance and avoiding future tax issues.
  • Years of education and experience should not be reduced to the time taken to submit a return.

However, several CAs pointed out how “Small town CAs charge more than that, billing their clients at least Rs. 5000 to 12000.”

Above all, many CAs criticised him for not discussing the fees with the client in advance, given that he has been doing so for the past 13+ years.

Is AI changing the ITR filing game?

Not everyone agreed that ₹1,500 was unfair.

Some CAs argued:

  • Routine ITR filing has become much simpler with technology. AI, to be more specific.
  • Tax software, online resources, and AI tools have reduced the effort required.
  • AI is apparently facilitating the dreaded process by pre-filling ITR forms with details ranging from salary, interest income, tax deducted at source (TDS), and dividends.
  • Filing a straightforward return is not necessarily a complex assignment.

As one professional put it: “It is not rocket science.”

Their argument: clients should pay based on the complexity and value of the work, not simply the income they earn.

AI is also increasingly becoming a part of the Income Tax Department of India.

In fact, according to a Mint article, more than 73 million ITRs were filed in AY 25-26, thanks in part to AI.

But are CAs themselves undercutting fees?

Interestingly, many professionals did not blame the client.

They blamed the pricing culture within the profession.

Several CAs argued that aggressive fee-cutting has created a race to the bottom.

When professionals compete mainly on price, clients start seeing tax services as a commodity rather than expertise.

One user wrote: “This kind of fee cut forces other CAs to drive down their prices too. Please value yourself”

Also read: CA firm proposes ₹1 as its Statutory Audit fee? 

Wrapping up…

The bigger debate is not about ₹1,500 or whether the fee was justified or not.

The viral post highlighted much bigger questions:

‘Are CAs underpaid in India?’

‘Should CAs undercut fees to win more clients?’

‘As AI automates routine tax work, how should CAs redefine their value?’

Tags: CA FirmTaxTax Professional
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The Finance Story empowers finance professionals—CFOs, consultants, accountants, tax experts, and bankers—to navigate critical market shifts, industry disruptions, and emerging technologies & trends.

How? We spotlight key opportunities in India and globally, equipping finance professionals with the insights and strategies to drive business growth, optimize decision-making, and position their companies at the forefront

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