Food delivery major Zomato on Friday siad it has enabled Income Tax Return (ITR) filing for its delivery partners to get refunds on the 1 percent TDS (Tax deducted at source) on delivery payouts. It added that it paid more than Rs 4000 crore to its delivery partners last fiscal and expects about ₹40 crore as TDS amount.

Deepinder Goyal, Founder & CEO, Zomato on X said, “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.”

“Within 48 hours of going live on the Zomato Delivery Partner app, more than 1 lakh partners have initiated their ITR filing; we are expecting a total tax refund of more than ₹40 crore to our delivery partners,” he added.

Goyla stated that Zomato is mandated by the government to deduct 1 per cent as TDS from the delivery partner payouts. He added that Zomato paid a total of more than ₹4,000 crore to our delivery partners last year.

“This TDS can be claimed as a refund through ITR filings.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, they will qualify for scholarships for their kids at various educational institutions, etc,” Goyal stated in his social media post.