Tata Capital said on Saturday that it has received a Rs 413 crore income tax reassessment order from Mumbai Authority for financial year 2017-18 and it will take necessary steps to file a rectification appeal.
The order was issued on the income tax website on March 20, and it was downloaded by the Company on March 21.
The re-assessment order pertains to Tata Capital Financial Services Limited, which is merged with Tata Capital Limited, said the non-banking financial company in a filing.
The order has been issued by the Deputy Commissioner of Income Tax, Mumbai.
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"The Income Tax Department has issued a Re-assessment Order dated March 12, 2026, on March 20, 2026, under section 143(3) read with section 147 of the Act, pertaining to Tata Capital Financial Services Limited (now merged with Tata Capital Limited with appointed date April 1, 2023) for the financial year 2017-18, wherein demand of Rs. 413.18 crores (including interest of Rs. 202.72 crores) is raised primarily on account of short credit of taxes paid, interest levied and certain disallowances," said the company.
The Company further stated that it does not envisage any material financial implication at this stage as there are certain errors apparent from records in the Computation Sheet.
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"The assessing officer, instead of allowing credit of taxes paid (including TDS, TCS & advance tax) by TCFSL aggregating to Rs. 225.89 crores as claimed in income tax return, has erroneously given the credit of taxes paid by TCL aggregating to Rs. 16.36 crores."
Consequent to the above demand, the tax department has further levied interest of Rs. 202.72 crores erroneously. Hence, the entire demand (short tax credit of Rs. 209.52 crores and interest levied thereon of Rs. 202.72 crores) is not maintainable, said the NBFC.
The Company said that it will take the necessary steps to file a rectification appeal, and believes that there will be no impact on the financials, operations or other activities of the Company on account of the aforementioned order.
"Based on our current assessment, we expect favourable orders on these disallowances since, there are strong grounds and judicial precedent in respect of the disallowances made in the order.
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