IT department freezes bank accounts of Cognizant's Indian subsidiary, CFO asks employees not to worry
Chennai, Mar 30 (IBNS): Cognizant has assured its employees that the tax dispute between its Indian subsidiary and the Indian Income Tax department will not affect them, according to media reports.
Chief Financial Officer of Cognizant, Karen McLoughlin, wrote an email to its employees assuring them that the controversy will not impact the salaries, pay hikes and promotions, reported the Economic Times on Thursday.
According to media reports, the Income Tax department has frozen bank accounts of Cognizant Technology Solutions India P Ltd (CTS) in Chennai and Mumbai after the company failed to pay Rs 2,500 crore as dividend distribution tax (DDT) to the government.
Reports on Thursday said that the company's accounts were frozen a week back and it had approached the High Court against the tax department.
Cognizant, according to some reports,has said it had paid all applicable taxes due on the transaction and a court has instructed the tax department not to take further action pending further hearings.
Image: Cognizant/Facebook
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