Byju’s Upsets Employees and IT Department with Late TDS Deposits

Byju’s, a prominent edtech player, finds itself in troubled waters as reports emerge of delayed tax deposits (TDS) and a lapse in required filings with the income tax (IT) department for employees earning a CTC of Rs 30 lakh and above since April of the previous year, as disclosed by sources within the company.

The affected employees are raising concerns about the TDS deducted from their salaries since April 2023, which curiously fails to reflect on their Form 26AS. 

Despite their pay slips indicating consistent TDS deductions, the apparent discrepancy suggests that the deducted tax has neither been deposited nor reported to the tax authorities. To compound the issue, the employer has not updated their salaries on Form 26AS since July, adding another layer of complexity to this unfolding scenario.

The company stated, 'While we're in the process of completing filings, the majority of TDS payments are already settled. We're giving priority to this, and for any isolated cases, we are working to resolve them promptly. All Form 16s will be issued on time, as has been our historical practice for T&L employees,' according to a statement.

This development comes as the financially strained company faces an insolvency plea initiated by the BCCI at the NCLT due to the premature termination of its sponsorship rights contract for Team India’s jersey. The case has been shifted to continue from February 7.

In the latest hearing on Wednesday, Byju applied to refer the insolvency dispute to an arbitrator. The edtech's lawyers argued that there are legal and factual questions involved in the dispute that can only be resolved through arbitration.

Byju’s lawyer, Senior Advocate Pramod Nair, informed the NCLT that negotiations with the BCCI were ongoing until last night. The edtech also notified the NCLT that it had raised objections to the BCCI’s insolvency plea against the company.

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