India’s Income Tax department has frozen Cognizant Technology Solutions Corp‘s (CTSH.O) bank accounts and deposits in Chennai and Mumbai for allegedly evading a dividend distribution tax (DDT), according to a report on Tuesday.
The cognizant spokesman confirmed the report and said in a statement that a court has instructed the tax department not to take further action pending further hearings.
Cognizant failed to pay the tax of more than 25 billion rupees ($385 million) in the 2016-17 financial year, the Hindu newspaper reported, citing officials from the tax department