The Income Tax Department has recently sent demand notices to a significant number of TCS employees, ranging from 30,000 to 40,000 individuals.
These notices pertain to discrepancies in their tax deducted at source (TDS) claims. The issue has raised concerns among employees and the company alike.
The Glitch and Communication from TCS
The tax demand varies based on the employee’s seniority within the company, ranging from Rs 50,000 to over Rs 1 lakh. However, the root cause lies in a software glitch that affected the updating of TDS claims on the income-tax portal.
As a result, the Income Tax Department found no record of the full amount paid by the assessee for the March quarter of FY24. This glitch has led to a wave of demand notices being issued.
Tata Consultancy Services (TCS), India’s largest IT services company, has been proactive in addressing the situation. While declining to comment publicly, TCS has communicated directly with its employees.
The company has advised them to wait for further instructions before making any payments mentioned in the notice. This cautious approach ensures that employees do not inadvertently pay amounts that may later be rectified.
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Working with Tax Authorities and Employee Anxiety
TCS has also taken steps to resolve the issue swiftly. The company has informed the tax authorities about the glitch and is actively collaborating with them.
In an internal communication, TCS assured its employees that they have received clarification from the tax authorities.
The email stated, “We understand that the tax authorities will be reprocessing the returns, post which TDS shall be in sync with Form 26AS issued by the income tax department and Form 16 Part A issued by TCS.”
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This reassurance aims to alleviate concerns and maintain transparency.
The sudden receipt of tax demand notices has understandably caused anxiety among TCS employees. Many are seeking clarity on the process and the expected resolution timeline.
While the glitch itself is unfortunate, the company’s commitment to resolving it promptly is commendable. Employees are advised to stay informed through official channels and await further updates.
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