Zomato enables delivery partners to claim TDS refunds

Food delivery platform Zomato has enabled its delivery partners to claim refunds on tax deducted at source (TDS) by filing an Income Tax Return (ITR).

“Within 48 hours of going live on the Zomato Delivery Partner app, more than 1 lakh partners have initiated their ITR filing,” Zomato cofounder and chief executive Deepinder Goyal wrote in a post on X on Friday.

The Gurgaon-based company expects its delivery partners to receive a total tax refund of over Rs 40 crore.



According to Goyal, the company paid a total of more than Rs 4,000 crore to its delivery partners last year. Zomato is mandated by the government to deduct 1% as TDS from the delivery partner payouts.

“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, qualify for scholarships for their kids at various educational institutions, etc.,” Goyal said.

According to its latest shareholder letter, the average number of monthly active delivery partners in the last quarter of FY24 was 418,000.

The company reported a fourth consecutive quarter of net profit at Rs 175 crore for the January-March period, compared to a loss of Rs 188 crore in the year-earlier period. Its operating revenue grew 73% on year to Rs 3,526 crore for the quarter.

On June 30, ET reported that Zomato received a tax demand, along with interest and penalty, aggregating Rs 9.5 crore from the Karnataka commercial tax authority.

Zomato has received multiple similar demands previously, the last being for Rs 11.82 crore on April 20, for export services provided by the company to its subsidiaries located outside India. Zomato has also received a tax demand for availing of an excess input tax credit aggregating to Rs 23 crore from the Karnataka commercial taxes authority on April 1.

Earlier on March 15, Gujarat's deputy commissioner of state tax, had raised a demand for Rs 8.6 crore on the company.