I-T department freezes Cognizant’s account due to a tax issue
On Tuesday Income Tax department has frozen Cognizant’s bank accounts in Chennai and Mumbai for allegedly evading dividend distribution tax in the 2016-2017 financial year.
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A spokesperson from the company in a statement has confirmed the news of I-T department freezing their bank accounts. He also stated that a court has instructed I-T department to not to take any further action before court’s hearing.
According to a report the company failed to pay the tax for the 2016-2017 financial year. The tax amount allegedly evaded is estimated to be more than $385 million.
According to Cognizant, the company had paid all applicable taxes. And, the company had approached High Court against I-T department.
Cognizant said that the action taken by Incom Tax department did not have any effect on the company’s business operation, associates, and work with their clients. The spokesperson from the company denied giving further details on the issue.