Deepinder Goyal-led Zomato enables delivery partners to claim TDS refunds

Deepinder Goyal-led food delivery giant Zomato has introduced a new initiative to help its delivery partners claim refunds on tax deducted at source (TDS).

The initiative enables delivery partners to file an Income Tax Return (ITR) to get back the TDS amount deducted from their payouts.

According to Zomato co-founder and chief executive Deepinder Goyal, more than 1 lakh delivery partners have initiated their ITR filing within 48 hours of the feature going live on the Zomato Delivery Partner app.

Thrilled to announce that we have just enabled all our delivery partners to get refunds on their TDS deduction through Income Tax Return (ITR) filing.

Within 48 hours of going live on the Zomato Delivery Partner app, more than 1 lakh partners have initiated their ITR filing; we… pic.twitter.com/lQxdRaFqd3

— Deepinder Goyal (@deepigoyal) July 19, 2024

How much TDS refund is expected?

Zomato expects its delivery partners to receive a total tax refund of over Rs 40 crore. The company paid more than Rs 4,000 crore to its delivery partners last year, with 1% deducted as TDS, translating to approximately Rs 40 crore.

The refund is likely applicable to the majority of the delivery partners whose incomes are below the taxable limit, making them eligible for a full refund of the deducted TDS.

This initiative allows many delivery partners to file taxes for the first time. By filing ITR, these individuals can gain access to structured credit, qualify for educational scholarships for their children, and benefit from various other financial services.