Indian Overseas Bank Slapped With Huge Income Tax Demand of Rs 642.74 Crores for AY 2016-17:

Indian Overseas Bank Slapped With Huge Income Tax Demand of Rs 642.74 Crores for AY 2016-17 Indian Overseas Bank (IOB) has recently informed that it is facing a significant demand of Rs 642.74 crore raised by the Income Tax Department for the assessment year 2016-17.

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Background of the Case

The notice is a "Giving Effect" order based on an earlier ITAT (Income Tax Appellate Tribunal) order dated 31.12.2024. The order made additions to the income of the bank after making certain disallowances. Accordingly, the bank's income was recomputed, and the department has raised a demand of Rs 642.74 crore for Assessment Year 2016-17.

Key Detail of Order

Particulars	Details
Authority issuing notice	Joint Commissioner of Income Tax (in-situ), Non-Corporate Circle-8, Chennai
Date of receipt	26.03.2026
Reference	ITAT Order ITA No. 202 & 253/Chny/2023 dated 31.12.2024 u/s 254 r/w Section 143(3)
Amount demanded	Rs. 642.74 Crores
Assessment Year	2016-17

Bank's Next Step

IOB has said that it is in the process of contesting the orders in the appropriate forum against the disallowances or the additions made in the order within the given time. The bank has expressed its confidence that it has enough legal grounds to substantiate its claim in the matter. The bank hopes that all the demand will drop.

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Financial Impact

IOB has clarified that it does not expect any impact on its financial operations or other activities.

Company's Disclosure Compliance

The above disclosure was made by Indian Overseas Bank on 27th March, 2026, to both stock exchanges under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.