Zomato now helps its delivery partners file Income Tax Returns (ITR) to get back the 1% TDS deducted from their payouts. In just 48 hours, over 1 lakh riders jumped on board using Zomato’s partner app, co-founder Deepinder Goyal announced on X.
Last year, Zomato paid its delivery partners over Rs 4,000 crore, meaning about Rs 40 crore was taken as TDS. Most riders, who earn below the taxable limit, can now get this money back.
This move follows a government rule requiring companies like Zomato and Swiggy to deduct 1% TDS from delivery earnings. Goyal said this will help many riders file taxes for the first time, opening doors to loans and scholarships for their kids.
This step is a game-changer for the gig economy and boosts state revenue. Experts think more companies will start collecting TDS, which will ultimately lead to benefiting the state’s finances.
Zomato’s value recently soared past Rs 2 lakh crore, which pushed Goyal into the billionaire club. Meanwhile, on the other hand they are appealing a GST demand in Karnataka, which includes Rs 5 crore in GST, nearly Rs 4 crore in interest, and Rs 50 lakh in penalties.
