EPF & ESI Shock: Lemon Tree Hotels Hit with Penalty Over Deposit Delays:

EPF & ESI Shock: Lemon Tree Hotels Hit with Penalty Over Deposit Delays Lemon Tree Hotels Limited recently informed the stock exchanges (NSE and BSE) regarding the receipt of an order from the Income Tax Department to its subsidiary company, Fleur Hotels, on June 25, 2025. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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As per the order, their Income Tax Return (ITR) was selected for scrutiny via CASS (Computer-Assisted Scrutiny Selection) by the income tax authority, where it was discovered that the company did not deposit the employee contribution towards the employee provident fund (EPF) and employee state insurance (ESI) within the specified timeline under the provisions of Section 36(1)(va) rws 2(24)(x) of the Income Tax Act, 1961. Due to this delay, the tax department disallowed these expenses, amounting to Rs 5.4 lakh and issued an income tax penalty order of Rs 83,455. The company is taking legal steps and plans to appeal against the tax department's order. Additionally, the above order will not affect the financial operation of Lemon Tree Hotels Limited.