Hero MotoCorp received Additional Income Tax Demand of Rs.26.4 Crore

Hero MotoCorp Ltd, a two-wheeler manufacturer, said on Wednesday that it has received an additional tax demand of Rs 26.40 crore from the Income Tax Department for the financial year 2019-20 (AY 2020-21).

Hero MotoCorp Ltd stated in a regulatory filing that it got an order from the Deputy Commissioner of Income Tax, Central Circle 27, New Delhi, on December 31, 2024, for the assessment year 2020-21.

The company stated that it filed its income tax return for the assessment year 2020-21 on December 31, 2020, and that it was thoroughly inspected by the tax officer in accordance with the terms of the Income Tax Act, 1961.

“The tax officer has made the additions to the reported income to an amount of around Rs.96.5 crore resulting in an additional tax demand of Rs.26.4 crore (approximately),” according to the report.

Hero MotoCorp said it is reviewing the order and will take appropriate action, including submitting an appeal and rectification application.

“In the view of the management, the demand raised is unsustainable in nature, and is not likely to have a material impact on financials, operations, or other activities of the company,” according to the exchange filing.