Federal Bank Limited Gets Rs 322.63 Crore Income Tax Refund For AY 2016-17

Federal Bank Limited has received major relief from the income tax department. As per the regulatory filing of Federal Bank, it has received an income tax refund of Rs 322.63 crore for the Assessment Year 2016-17.

Background of the Case

The case pertained to a tax dispute related to the assessment year 2016-17. Following the ITAT order dated 13 August 2024, the Income Tax Department passed an order under Section 254 of the Income Tax Act, 1961. As per this order, the amount refundable to the Bank is Rs 322,62,67,421, including interest under section 244A.

The bank stated that it has received orders from the Income Tax Department, Corporate Circle 2(1), Kochi. This order was received on March 27, 2026, at 4:02 p.m, determining the income tax refund in favour of the bank. It was also mentioned in the letter that this order has been issued to give effect to the previous appellate decision.

Key details of Order

Financial Impact

As per the said orders, an amount of Rs 3,226,267,421, including interest, was declared payable as a refund to the bank for the assessment year 2016-17. The interest has been calculated under Section 244A of the Income Tax Act, 1961.

Bank’s Disclosure Compliance

This information was given by Federal Bank under Regulation 30 of the Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure Requirements) Regulations, 2015.