BYJUs Tax Scrutiny Over Alleged Delay in TDS Deposits

India’s edtech giant, BYJU’S, is reportedly under scrutiny for allegedly delaying the Tax Deducted at Source (TDS) deposit and failing to file income tax returns for employees earning over Rs 30 lakh since April of the previous year.


According to a report by Financial Express, employees claim that their Form 26AS, which reflects TDS deductions, does not show the deductions from their salaries starting from April 2023.


Despite pay slips issued by BYJU’S indicating consistent deductions throughout the period, the tax deducted was reportedly not deposited or reported.


Notably, salaries were not updated in Form 26AS after July, as stated in the report. Queries sent to BYJU’s regarding these issues remained unanswered at the time of publication.


In addition to the tax-related concerns, the Bengaluru-based company is facing an insolvency petition filed by the Board of Control for Cricket in India (BCCI) with the National Company Law Tribunal (NCLT) over the early termination of its sponsorship rights contract for Team India’s jersey.


The hearing for this matter has been adjourned until February 7.

Reports indicate that BYJU’S has filed an insolvency dispute with BCCI over a Rs 158-crore payment, involving both legal and factual aspects, necessitating arbitration.


The company had previously raised objections against BCCI’s insolvency petition in September 2023.


The NCLT in Bengaluru has concluded that the arbitration application would not impact the ongoing insolvency proceedings. BYJU’s is actively working to resolve the matter with the cricket administrator.


The company had announced plans to achieve profitability by March 2024 through consolidation, restructuring, and a $1.2-billion loan settlement, which includes cutting down 3,000-3,500 jobs and eliminating duplicated roles.


In November 2023, BYJU’s released specific financial figures related to its core business as part of the audited financial results for FY22.


The core business reported a total income of Rs 3,569 crore in FY22, a significant increase from Rs 1,552 crore in the previous year. The EBITDA loss decreased to Rs 2,253 crore from Rs 2,406 crore in the last financial year.