HFCL to pay TDS Compounding Fee of Rs. 2.89 Crores: Know More

HFCL Limited has received a compounding letter dated June 09, 2025, from the Income Tax Department, Office of the Chief Commissioner of Income Tax (TDS), CCIT (TDS), Delhi, notifying the compounding charges implemented on the firm for delay in depositing Tax Deducted at Source (TDS) during the financial year 2020–21. The delay was caused by the COVID-19 pandemic.

In a regulatory filing dated June 10, 2025, HFCL informed both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) that the Office of the Chief Commissioner of Income Tax (TDS), Delhi, had issued a compounding letter on June 9, 2025. This was in response to a voluntary compounding application submitted by the company admitting the delay and seeking a settlement.

In accordance with the letter issued by the income tax department, a compounding fee of Rs. 28,976,756 has been imposed on the company for the financial year 2020-21, which HFCL is required to pay before July 31, 2025. The firm has clarified that the delay in TDS payment was accidental and was mainly caused by functional disturbances during the time period of COVID-19.

Importantly, the company has assured stakeholders that this action will not have any material impact on its financials, operations, or other core activities, except to the extent of compounding charges as stated above.

Refer to the regulatory filing for complete information