Yes Bank Receives Tax Demand Of Rs 2,209.17 Crore For AY20

Yes Bank Ltd. has received an income tax demand of Rs 2,209.17 crore including interest, as per a disclosure to the exchanges on Saturday.

The bank had originally received an order on Sept. 30, 2021 for assessment year 2019-20, when it was granted a refund in line with the return of income filed earlier, said the filing. However, it was reopened by the income tax department in April 2023.

The reassessment order was passed by the income tax department of the National Faceless Assessment Unit on March 28, in which effectively the grounds on which the reassessment proceedings were initiated have been dropped.

"Hence, the total income which was assessed in the original assessment order should have been remained unchanged and consequently, no demand should have been raised against the bank," stated the filing.

Yes Bank believes that it has adequate grounds to reasonably substantiate its position in this matter and clarified that the bank does not expect any adverse impact on its operations.

"The bank would pursue an appeal and rectification proceedings against the said reassessment order under the applicable law," added the disclosure.

Shares of Yes Bank ended 2.38% lower at Rs 16.88 apiece on Friday, underperforming the benchmark NSE Nifty 50, which ended on a 0.31% decline.

Shares of the bank have fallen 27.24% in the last 12 months and slipped 13.83% in the year-to-date period.