Recently, around 30,000 to 40,000 employees of Tata Consultancy Services (TCS) received tax demand notices from the Income Tax Department. These notices, ranging from Rs 50,000 to over Rs 1 lakh, have been issued due to discrepancies in the tax deducted at source (TDS) claims. The issue appears to be related to a software glitch that resulted in outdated TDS information on the income tax portal. TCS is working to resolve the problem and has advised employees to await further instructions before making any payments.
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- The Income Tax Department issued demand notices to approximately 30,000 to 40,000 TCS employees.
- The tax demands range from Rs 50,000 to over Rs 1 lakh, depending on the employee’s seniority.
- The issue arose due to discrepancies in tax deducted at source (TDS) claims.
- A software glitch led to outdated TDS information on the income tax portal.
- Notices were issued under Section 143(1) of the Income Tax Act on September 9.
- The glitch caused a mismatch between claimed TDS and the records available on the tax portal.
- CA Himank Singla noted that the discrepancies led to withheld refunds.
- TCS has not publicly commented but is addressing the issue internally.
- The company has advised employees to wait for further instructions before making any payments.
- TCS is coordinating with tax authorities to resolve the discrepancies and align TDS with Form 26AS and Form 16 Part A.
