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Client:

Education Sector

Business Objective:

To ensure that the company continues to be unhampered by wrongful deduction of TDS in the salary tax structure and subsequent Income Tax audit case

Business Challenge:

There was an Income Tax Department notice served to the company on the basis of wrongful TDS deduction in payroll. The discrepancy involved a nine-figure sum, and the internal tax department at the organization did not have enough expertise on the matter to resolve this issue.

AKCJ approach:

AKCJ was appointed by an education sector company which had thousands of employees on its payroll. There was a major discrepancy in the sum deducted from monthly salaries as TDS, and our company was brought in to resolve the issue. In the initial review, our team observed that the Income Tax department was not wrong in their claim and the salary structure formed by the payroll department was not in line with the provisions of the taxation Act.

We managed to recreate the whole payroll structure and create a database of the discrepancy, and every employee was compensated for their earlier loss. On the legal side, we managed to present the accounts in an effective manner to obtain a judgment which had minimal repercussions on the business. In the redemption phase, the management availed our expertise decided to restructure their internal taxation and payroll policy. Our highly qualified taxation team reframed the salary structure of the entire staff of the company in complete compliance with the Income Tax Act and other applicable labor laws. We also managed to provide a list of instructions on how to update the payroll software in case of further updates on the Tax code by the government.

Result:

  • The income tax case was completed with minimal effect on the business or brand value
  • Every employee was compensated for the loss in salary due to an obsolete tax code structure in the existing payroll.
  • Our taxation team reframed the salary structure of the entire staff of the company in complete compliance with the Income Tax Act and labor laws
  • Update the payroll software to incorporate future changes in tax code
479, 4th Floor, Aggarwal
Cyber Plaza-II,
Netaji Subhash Place,
Pitampura,
Delhi-110034

[email protected]
+91 9910 990 805