The Income Tax Department has seized several bank accounts of India’s leading IT company Cognizant. The department took this step because the company did not deposit tax of 2500 crore to the government. According to the Income Tax rules, every company has to pay dividend distribution tax to the government, if it has made any profit from the reduction in capital. Cognizant had to pay a tax of Rs 2500 crore in 2016-17, which he has not yet deposited. The company had bought shares from its shareholder in May 2016. In these shareholders, there was a Mauritius company and an American company with a share of 54 and 46 percent in Cognizant. Cognizant did not deduct tax from the Mauritius company when buying shares but had tax deducted from the American company.
Cognizant is expected to remove about 6,000 Indian employees; this has spread like a fire across the globe. It is being said that about 6000 Indian employees can be excluded in the current assessment process. Apart from this, more and more American professionals will be given a job. Chennai’s IT professionals have started looking for legal alternatives to deal with this and have been preparing for the reconciliation process with state labour department. According to some reports, during the aprazzle cycle, Cognizant can get him out of a job without the desire of employees.
For this, the Forum for IT Employees has sent a request to the Assistant Labor Commissioner and the State Labor Commissioner. He described illegal eviction by Cognizant as an unlawful eviction. In an email to employees, Karen McLoughlin, Chief Financial Officer of Cognizant, said: “You may have seen some reports about the actions recently strived by the Indian Income-Tax Department against Cognizant. I am writing to you to let you know our position and bolster that this is not impacting Cognizant’s business operations, associates and our work with clients.”