Zomato Empowers Delivery Partners with New Tax Refund Tool
Zomato, the renowned food delivery giant, has taken a significant stride towards enhancing the financial well-being of its extensive network of delivery partners. The company recently unveiled a groundbreaking tool designed to enable delivery partners to reclaim tax deducted at source (TDS) through the filing of Income Tax Returns (ITR).
The Co-founder and CEO of Zomato, Deepinder Goyal, conveyed his excitement about this development through a tweet on X (formerly Twitter), stating, “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.”
Goyal elaborated that 1 per cent is mandatorily deducted as TDS from the delivery partner payouts as per government regulations, and this amount can be reclaimed through ITR filings. Remarkably, within just 48 hours of the tool’s launch on the Zomato Delivery Partner app, over 100,000 partners initiated their ITR filings, signifying a substantial expected tax refund of more than Rs 40 Crores for the delivery partners.
In its latest shareholder letter, Zomato disclosed an average of 418,000 monthly active delivery partners in the final quarter of FY24, indicating that the majority of partners will be filing taxes for the first time due to this initiative. Additionally, the company reported its fourth consecutive quarter of net profit, achieving Rs 175 crore for the January-March period, marking a noteworthy upsurge from the previous year’s loss of Rs 188 crore. Operating revenue also displayed a robust 73 per cent year-on-year increase, reaching Rs 3,526 crore for the quarter.
This initiative not only underscores Zomato’s commitment to the financial well-being of its delivery partners, but also solidifies its position as a leader in fostering empowerment and prosperity within its ecosystem.
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