Employees of TCS have received a notice from the Income Tax Department to pay tax. It is said that this has happened due to a mistake in processing the income tax returns of the employees by the Income Tax authorities. The company has currently asked the employees not to pay tax.
Many employees of Tata Consultancy Services (TCS) have received a demand notice from the Income Tax Department. The reason for this is some problem in the TDS claim. TCS has currently asked its employees not to pay tax. They have been asked to wait till further instructions. This tax demand ranges from Rs 50,000 to Rs 1.5 lakh. Sources have given this information. TCS is India’s largest IT company. Its headquarters is Mumbai.
Has there been an error in processing the ITR?
TCS has said in an email sent to its employees that the associates who have received this notice will get a further intimation regarding the correction of the mistake. Therefore, they do not need to pay tax. The company has said that this error will be rectified after the tax authorities send the Rectification Intimation. Sources said that there is a possibility that there has been a mistake in the processing of the income tax return filed by the authorities. The assessing officer has the right to amend the notice.
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Will reprocessing the return correct the mistake?
In a mail sent to employees, the company has said that the authorities will reprocess the income tax returns, which will eliminate the data discrepancy between Form 26AS issued by the Income Tax Department and Form 16A issued by TCS. Form 26AS issued by the Income Tax Department contains details of tax deducted from the source of income (TDS/TCS). Form 16A contains information about tax deducted from salary by the employer.
Can employees take advice from tax advisors?
TCS has said in another email that if employees wish, they can consult their tax advisors or contact the company. Moneycontrol has contacted the company for more information on this. This news will be updated when a response is received. According to section 154 (2) of the Income Tax Act, the Income Tax Department can amend the notice in two ways. First, it can take the initiative on its own. Second, it can amend on the application of the assessee or tax deductor.
