Tata Capital Flags Rs 413 Cr Income Tax Demand as Erroneous, Plans Appeal with Strong Confidence of Relief:

Tata Capital Flags Rs 413 Cr Income Tax Demand as Erroneous, Plans Appeal with Strong Confidence of Relief Tata Capital Limited has informed the stock exchange that it has received an Income Tax reassessment order dated March 20, 2026, passed by the Deputy Commissioner of Income Tax, Circle - 2(3)(1), Mumbai, under Section 143(3) read with Section 147 of the Income Tax Act, 1961, for the Financial Year 2017-18 (Assessment Year 2018-19). The company downloaded the order from the website on March 21, 2026, at 11:02 AM. The order belongs to Tata Capital Financial Services Limited (TCFSL), which has now amalgamated with Tata Capital Limited, effective from April 01, 2023. The order has a total demand amounting to Rs 413.18 crore, including interest of Rs 202.72 crore, on the grounds of an alleged short credit of taxes paid, along with certain disallowances.

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However, the company has claimed that there are clear errors in the computation. Specifically, the tax officer wrongly allowed credit of only Rs 16.36 crore instead of the Rs 225.89 crore that was actually paid by TCFSL. This mistake merely led to an increment in demand of Rs 209.52 crore and related interest. Therefore, the company believes that the entire demand is not valid and hence is planning to furnish a rectification application or appeal to rectify the default and is expecting a favourable outcome. Additionally, there are disallowances resulting in a tax impact of Rs 26.31 crore, for which the company has already filed or is in the process of filing appeals. Based on legal grounds and past judicial rulings, the company is confident of success in these matters as well.

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The company has asserted that the action does not impact its financial operations and other business activities in the market. The aforementioned disclosure has been made via a regulatory filing dated March 21, 2026, addressed to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), issued under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations”).