Zydus Healthcare Ltd., a wholly owned subsidiary of Zydus Lifesciences Ltd., has received a tax demand of Rs 284.6 crore from the Income Tax Department for the assessment year 2023-2024.
The drugmaker's claim for deduction under sections 80-IE and 80-JJAA of the IT Act was not allowed without any basis, and it was given short credit for taxes deducted or paid, it said in an exchange filing.
Section 80JJAA is a provision that offers tax deductions to employers who generate employment in the formal sector. While the tax benefits under Section 80IE include a 100% deduction of profits and gains derived from the business of developing, maintaining, and operating the infrastructure facility for a period of 10 consecutive assessment years,.
ZHL expects the tax demand to have no material financial impact and has already disagreed with the demand on the e-filing portal of the department, it said.
The company is also going to file a 'Rectification Application' under Section 154 of the IT Act against the intimation before the department and the Jurisdictional Assessing Officer.
"The company strongly believes that once the rectification will be made, the entire demand will be deleted," the filing said.
Shares of Zydus Lifesciences closed 0.56% lower at Rs 676.15 apiece on Tuesday, ahead of the announcement, compared to a 0.32% advance in the benchmark BSE Sensex.
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