Tax Authorities Issue Demand Orders Of Nearly Rs 300 Crore To Three Banks Since Last Week

A total of three banks have received demand orders of nearly Rs 300 crore cumulatively from Income Tax authorities, according to their disclosures made to stock exchanges.

On March 17, the Mumbai tax authority imposed a demand order of Rs 145 crore on Yes Bank for financial year 2015-16, including interest amounting to nearly to Rs 45 crore.

Following Yes Bank, Bandhan Bank received a hefty demand order of over Rs 119 crore from the Faceless Assessment Unit of the Income Tax Department. The demand order was for the annual year 2023-24 because of disallowances of certain expenditure or deductions claimed, as per an exchange filing on Wednesday.

However, the bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter and is under the process of filing an appeal before the Higher Appellate Forums against the said order.

Bandhan Bank expects the substantial portion of this demand order to subside and said that there is no impact on financial operations or other activities of the bank.

IndusInd Bank, which has been the talk of the town for its accounting discrepancy issue in forex derivates, received a goods and services tax demand order worth Rs 30 crore from Thane tax authority, the bank informed exchanges on Tuesday.

Apart from these three lenders, DCB Bank was imposed a penalty of Rs 1.7 crore last month by the Chennai GST Authority. The penalty was levied for non reversal of ineligible input tax credit for the period of 2018-22, an exchange filing had said.