TCS employees receive tax notices! The Income Tax Department has issued demand notices to a significant number of TCS employees, between 30,000 and 40,000 people, because their Tax Deducted at Source (TDS) details do not match.
The tax demands range from Rs 50,000 to over Rs 1 lakh, depending on the employee’s seniority in the company. According to a report in TOI, the problem seems to be due to a software glitch that resulted in the TDS applications not getting updated on the income tax portal.
The notices, issued on September 9 under Section 143(1) of the IT Act, state that the amount paid by the taxpayer for the March quarter of FY24 was not recorded in full.
CA Himank Singla told X, “Many employees of Tata Consultancy Services are getting tax demands from the I-T department for the AY 2024-25. On checking 143(1) intimations sent by the department, the TDS claimed by the assessee has not been correctly updated by the department and hence refunds are being withheld.”
TCS declined to comment on the matter when contacted by TOI via email. The company has reached out to its employees and advised them to wait for further instructions before making the payments mentioned in the notice.
TCS has also informed the tax authorities about the matter and is working with them to find a speedy resolution.
In an internal communication, TCS has informed its employees that they have received a clarification from the tax authorities.
The email states, “We understand that the tax authorities will be reprocessing the returns, post which TDS (tax deduction at source) shall be in sync with form 26AS issued by the income-tax department, and Form 16 Part A issued by TCS,” it said. “Associates that received the notice will receive a rectification intimation in due course and are not required to pay any demand amount. Once the tax authorities send the rectification intimation, the discrepancies should be resolved”, it added.
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