Deposit 15% of Rs 28 bn tax demand in a separate account: HC to Cognizant

The company has sought the court's direction to release the accounts by retaining some fixed deposits

The Madras High Court on Tuesday directed the Income Tax Department to de-freeze Cognizant's bank account with JP Morgan, Mumbai, in the Rs 28 billion tax dispute. The Court also directed Cognizant to deposit 15 per cent of the tax demanded, in a separate account to lift the attachment of some of the other accounts.

Earlier, on March 22, 2018 the Department had issued an order seeking Cognizant to pay 15 per cent tax on a Rs 194.15 billion paid by the company under a scheme to its shareholders overseas. It has also attached the bank accounts of the company, immediately,