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Zomato Facilitates ITR Filing for Delivery Partners, Expects ₹40 Crore in Refunds

• ByStartupStory     |    July 20, 2024

Food delivery giant Zomato announced on Friday that it has enabled the filing of Income Tax Returns (ITR) for its delivery partners. This initiative will help them receive refunds on the 1 percent Tax Deducted at Source (TDS) from their delivery payouts.

The company disclosed that it paid over ₹4,000 crore to its delivery partners in the last fiscal year, with approximately ₹40 crore deducted as TDS. With the new ITR filing facility, Zomato expects its delivery partners to claim back this amount.

“Thrilled to announce that we have just enabled all our delivery partners to get refunds on their TDS deduction through Income Tax Return (ITR) filing,” stated Deepinder Goyal, Founder & CEO of Zomato, on social media platform X.

Thrilled to announce that we have just enabled all our delivery partners to get refunds on their TDS deduction through Income Tax Return (ITR) filing.

Within 48 hours of going live on the Zomato Delivery Partner app, more than 1 lakh partners have initiated their ITR filing; we… pic.twitter.com/lQxdRaFqd3

— Deepinder Goyal (@deepigoyal) July 19, 2024

Goyal further elaborated on the swift uptake of this initiative, mentioning, “Within 48 hours of going live on the Zomato Delivery Partner app, more than 1 lakh partners have initiated their ITR filing; we are expecting a total tax refund of more than ₹40 crore to our delivery partners.”

According to Goyal, Zomato is mandated by the government to deduct 1 percent as TDS from the delivery partner payouts. The company’s move to facilitate ITR filing is expected to significantly benefit its delivery workforce. “This TDS can be claimed as a refund through ITR filings. With this initiative, most of our delivery partners will be filing taxes for the first time in their lives, which should make their lives easier in the long run – for example – they will be able to get access to structured credit, they will qualify for scholarships for their kids at various educational institutions, etc,” Goyal added in his post.

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