The income tax department’s recent actions have sent shockwaves through the former employee ranks of edtech giant Byju’s.
Over the last ten days, several ex-employees have received notices related to unpaid Tax Deducted at Source (TDS).
These notices, delivered via email and courier, pertain to taxes that were deducted by Byju’s from employees’ salaries but allegedly not submitted to the tax authorities.
The situation has raised concerns about tax compliance and the financial health of the company.
Unpaid TDS Notices to Byju’s Employees and Legal Implications
The notices have affected both former and current employees. Estimates suggest that thousands of individuals may be impacted.
The demand notices specifically address the tax amount deducted by Byju’s from employees’ earnings. These amounts should have been deposited with the income tax department but allegedly were not.
Kaushik Kumar Lade, a former senior manager of sales at Byju’s, confirmed receiving the notice. He believes that over 6,000 former or current employees have been served with similar demands.
Non-deposit of TDS and provident fund deductions from employees is a serious offence under Indian laws.
While tax authorities can take action against the company for these violations, employees may face consequences related to TDS.
Also Watch: Q1 Results | The Future of IT/Tech Jobs in India for FY25, Click Here
This situation echoes past cases, such as the grounded Kingfisher Airlines, where employees faced a double whammy—non-payment of dues and simultaneous claims from the tax department.
Many Byju’s employees have sought clarity from the company regarding their liability. An anonymous employee expressed uncertainty about the notice’s implications and hoped for clarification.
Byju’s Financial Woes
Byju’s is currently undergoing an insolvency process.
Pankaj Srivastava, the National Company Law Tribunal-appointed resolution professional, is responsible for inviting lenders, employees, vendors, and the government to claim unpaid dues.
However, neither Byju’s nor Srivastava responded to queries regarding the TDS notices.
As of August 30, the government had registered claims amounting to $101 million with the Insolvency and Bankruptcy Board of India. Byju’s financial troubles have been well-documented.
Earlier this year, 62 Byju’s employees took legal action against the company, demanding payment of overdue salaries totaling more than Rs 2.3 crore.
These salaries had been outstanding since January 2024, highlighting the severity of the company’s financial challenges.
Also Watch: What’s Employee Value Proposition in HR- 5.0, Click Here
Conclusion
The Byju’s saga continues, with unpaid TDS notices adding to the company’s woes. As the insolvency process unfolds, employees anxiously await answers while grappling with the implications of these demands.
The situation underscores the importance of transparent financial practices and employee rights in corporate India.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube, to get the latest news updates, Subscribe to our Channels. WhatsApp– Click Here, Google News– Click Here, YouTube – Click Here, and LinkedIn– Click Here.
