Another trouble for Byju's, this time facing scrutiny over alleged delay in TDS deposits: Report

Edtech giant Byju's is currently under the spotlight for allegedly delaying the deposit of Tax Deducted at Source (TDS) and failing to file income tax returns for certain employees. 

According to The Financial Express report, Byju's employees who are earning over Rs 30 lakh have not seen their TDS reflected in their Form 26AS since April 2023, despite deductions shown in their pay slips.

The TDS discrepancy

Employees claim that while their pay slips indicate TDS deductions, these amounts do not appear in their Form 26AS, a document that reflects tax deducted and deposited against their PAN.

The discrepancy has been noted from April 2023 onwards, with no updates post-July, the report said.

Legal implications and penalties

Under Indian tax law, failure to deposit TDS can attract significant penalties for the company. An interest of 1.5% per month is levied for delays, calculated from the deduction date to the deposit date. 

Additionally, a daily penalty of Rs. 200 can be imposed, not exceeding the TDS amount. More severe penalties, including imprisonment, can be enforced for providing incorrect information or failing to submit returns on time.

What does Byju say?

Byju's has claimed that while most TDS payments are complete, they are prioritizing the closure of any isolated cases. The edtech giant has assured that all Form 16s will be issued timely, as has been the practice for T&L employees historically.

The edtech giant is also entangled in a legal dispute with the Board of Control for Cricket in India (BCCI) over early termination of a sponsorship contract. This has led to an insolvency petition against the company at the National Company Law Tribunal (NCLT). 

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