Zomato has launched a significant new initiative offering tax exemption to lessen the financial strain on its delivery partners. The program streamlines partners’ financial management by assisting them in claiming refunds for Tax Deducted at Source (TDS) deducted from their profits. Furthermore, the new tool makes tax filing considerably easier and more accessible by enabling delivery partners to file their Income Tax Return (ITR) immediately through the Zomato Delivery Partner app. With over 1 lakh partners starting their ITR file within 48 hours of its launch, it has had a remarkable start, demonstrating the program’s significant benefits and favourable welcome.
How much is expected in return for TDS?
Zomato anticipates a tax refund of more than Rs 40 crore for its delivery partners. With 1% of the total amount paid as TDS, or about Rs 40 crore, the company paid its delivery partners more than Rs 4,000 crore in the previous year. Most delivery partners whose income falls below the taxable limit will probably be eligible for the refund, covering the whole amount of the TDS withheld. Thanks to our program, numerous delivery partners can file taxes for the first time. These people can obtain structured credit, qualify for child education scholarships, and receive various other financial services by filing an ITR
Zomato delivery partners might benefit financially from the new tax reduction program
The project gives partners a direct financial boost by allowing them to recoup a portion of the TDS deducted from their earnings, thus increasing their take-home income. In addition, the Zomato Delivery Partner app’s simplified ITR filing procedure improves financial literacy and gives partners more control over how they handle their taxes. In addition to promoting their financial stability, this enhanced influence over their financial matters also helps them better understand personal finance and tax laws.
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Their income tax bracket determines each delivery partner’s share of the TDS return. This implies that the refund will be calculated based on their income and the relevant tax rates. Zomato believes this approach will have a significant overall impact, with a total return of more than Rs 40 crore anticipated. This considerable amount demonstrates the scope of the program’s potential benefits, providing a sizable amount of financial relief to numerous delivery partners throughout the platform.
