IT giant Tata Consultancy Services (TCS) said on Friday that the tax demand notices sent to several of its employees were a “discrepancy,” reported Business Standard on Saturday, September 14. 

The Department of Income Tax will be reprocessing the returns, according to the news portal’s report. 

Nearly 40,000 TCS employees received these notices with the tax demands ranging between ₹50,000 to ₹1 lakh, depending on their seniority level in the company, as per the report. 

Tata Consultancy Services (TCS) shares closed 0.11 per cent higher at ₹4,522.25 after Friday’s trading session, compared to ₹4,517.20 at the previous market close. 

“We understand that the tax authorities will be reprocessing the returns, following which the TDS shall be in sync with Form 26AS issued by the Income-Tax Department, and Form 16 Part A issued by TCS. Associates who received the notice will receive a rectification intimation in due course and are not required to pay any demand amount. Once the tax authorities send the rectification intimations, the discrepancies should be resolved,” said TCS in an internal communication to its employees that was accessed by the news portal.

Is the tax notice issue resolved?

The IT major said that the associates who received the notice will receive a rectification intimation in due course and are not required to pay any demand amount, according to the report.

“Once the tax authorities send the rectification intimations, the discrepancies should be resolved,” said TCS.

TCS did not comment on the development, but the company gave acknowledgement that they have received a clarification from the tax authorities related to the income-tax demand notice issue, according to the report.

“The Income-Tax Department should have been more cautious before issuing notices based on technical glitches. Receiving this notice due to such issues can cause significant mental stress and harassment for salaried employees. The department should exercise greater care when issuing notices to employees of a single company,” said Abhishek Raja Ram, senior partner at Abhishek Raja and Associates, as per the news report.