TCS employees get I-T notice over TDS

BENGALURU: Many employees at TCS have been served with demand notices by the income tax department related to discrepancies in tax deducted at source (TDS) claims.

Sources told TOI that 30,000 to 40,000 TCS employees received notices with a tax demand ranging from Rs 50,000 to over Rs 1 lakh, depending on the seniority in the IT firm. The issue appears to have originated from a software glitch which resulted in TDS claims not being updated on the income-tax's portal.

The notices, issued on Sept 9 under Section 143(1) of the IT Act, said there was no record for the full amount paid by the assessee for the March quarter of FY24.

CA Himank Singla took to X to share, "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."

The notices, which have caused concern among employees, highlight discrepancies between the TDS amounts claimed by the individuals and the corresponding data available with the income-tax department. TCS declined to comment on TOI's email related to income-tax notices. The company, in an email to its employees, asked them to wait for further instruction before paying any amount mentioned in the notice. The company also said it has brought this issue to the notice of tax authorities and it's working with them for a fast resolution.

In an internal communication shared with its employees, TCS told employees that they have received a clarification from the tax authorities. "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," the email to employees said.