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Cognizant bank account freezed by I-T department, dispute will not impact salary says spokesperson

Cognizant bank account freezed by I-T department, dispute will not impact salary says spokesperson
Written by Abhishek Lohia

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.”

Cognizant Spokesperson tweet

Cognizant Spokesperson statement

About the author

Abhishek Lohia

Abhishek Lohia is a Sports and Political Writer at Newsfolo. He has been working as a Journalist for 2 years and has previously worked at Sportsflu, Sportscafe, and some other Digital Channels. He covers the ruling BJP Government, civic bodies, and Indian politics. He also covers latest Sports News and Live Coverage. He is a graduate in Electrical Engineering from IPEC College, Sahibabad. He can be reached at; [email protected], you can also follow him on twitter @chiraglohia2

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