The Income Tax Department has issued notices to former employees of edtech startup, Byju’s, over the past ten days concerning unpaid tax deducted at source (TDS). Multiple employees have reported receiving these notices both via email and courier, raising concerns over tax compliance.
The notices appear to relate to taxes that were deducted by Byju’s but not submitted to the tax authorities. Some estimates suggest that thousands of former and current employees may be affected. Those who received the notices have reached out to the company’s HR and management, with responses indicating that efforts are being made to address the issue and settle the outstanding payments.
Under Indian law, employees who fail to pay their taxes or provident fund contributions face significant penalties, even if the fault lies with the employer. While authorities can take action against the company, employees often bear the immediate burden of compliance issues, as seen previously in the case of Kingfisher Airlines, where employees faced tax department scrutiny despite not receiving their dues.
Several Byju’s employees have sought clarification from the company, expressing concerns about their potential liabilities. Meanwhile, Byju’s, which is currently undergoing insolvency proceedings, has not commented on the matter.
As of 30 August, claims totalling $101 million have been registered with the Insolvency and Bankruptcy Board of India. Earlier this year, 62 Byju’s employees filed legal action against the company, alleging unpaid salaries amounting tomorrow over Rs 2.3 crore since January 2024, underscoring the company’s deepening financial troubles.
