IIFL Finance shares fell over 8% as the market opened on Tuesday, after the company disclosed that its subsidiary IIFL Home Finance has received a Rs 963.39-crore tax demand from the Income Tax authority.
The demand relates to a block assessment for the period from April 1, 2018 to Feb. 3, 2025. The assessment order was received on Aug. 24, 2026.
The stock opened at Rs 667 apiece on NSE, against its previous close at Rs 696.4, and then declined to around Rs 643.55, declining more than 8%.
However, currently, it is trading at Rs 675.9 apiece on NSE.
IIFL Home Finance Disputes Tax Demand
IIFL Home Finance said it has substantial factual and legal grounds to contest the demand. It said income related to overriding commission and interest strip assets had already been offered to tax, while the relevant tax credit had not been fully considered.
The company also disputed the interpretation of "general reserves" for calculating the applicable limit as per the Income Tax Act and the treatment of ESOP expenses.
IIFL Home Finance is pursuing appellate, rectification and other remedies available under law. The company said it does not currently expect the matter to have a material impact on its financial position or operations.
IIFL Finance also said the Income Tax authority has granted a stay on recovery of an earlier Rs 475.56 crore demand, subject to payment of Rs 23.78 crore, or 5% of the disputed amount. The company has already paid the first instalment of Rs 5 crore.
Also Read: IIFL Finance, Subsidiary Home Finance Face Rs 963 Crore Tax Demand From IT Authority
Stock Price Movement
Despite today's decline, the stock has remained up for a prolonged period. It has delivered returns of more than 17% over the past month, while rallying over 42% in the past year.
Currently, it is trading at a price-to-earnings multiple of 13.13 times, with a market cap of Rs 28,691.95 crore.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.