Why around 40,000 TCS employees have received tax demand notices for Rs 50,000 to over Rs 1 lakh - Times of India

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TCS employees receive tax demand notices! The Income Tax Department has issued demand notices to a significant number of TCS employees, ranging from 30,000 to 40,000 individuals, due to discrepancies in their tax deducted at source (TDS) claims.
The tax demand varies from Rs 50,000 to over Rs 1 lakh, depending on the employee's seniority within the company.The issue seems to have stemmed from a software glitch that caused TDS claims to not be updated on the income-tax portal, according to a TOI report.
The notices, which were issued on September 9 under Section 143(1) of the IT Act, said that there was no record of the full amount paid by the assessee for the March quarter of FY24.
CA Himank Singla shared on 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 has declined to comment on the matter when contacted by TOI via email. However, the company has communicated with its employees, advising them to wait for further instructions before making any payments mentioned in the notice.
TCS has also informed the tax authorities about the issue and is working with them to resolve it quickly.
In an internal communication, TCS has informed its employees that they have received clarification from the tax authorities.
The email says, "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 company is actively working towards resolving the issue and ensuring that the discrepancies are rectified.
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