Bank of Baroda Receives Demand Order from Income Tax Department
Bank of Baroda announced today, March 30, 2026, that it received a demand order from the Faceless Assessment Unit, Income Tax Department, pertaining to Assessment Year 2019-20.The demand order totals ₹457.25 Crores under section 156 of the Income Tax Act, 1961. The matter concerns the taxability of income from foreign branches and broken period interest paid on the purchase of securities.
The bank states that it is currently in the process of filing an appeal with the Commissioner of Income Tax (appeals), National Faceless Appeal Centre (NFAC), and may file a writ petition with the Hon'ble High Court. Bank of Baroda believes it has adequate grounds to support its position and anticipates the demand will subside.
According to the bank, the demand order will not significantly impact its financial operations or other activities.
Details of the Demand Order:
| Name of the authority | |
|---|---|
| Nature and details of the action(s) taken or order(s) passed | Faceless Assessment Unit (FAU), Income Tax Department |
| Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | 30.03.2026. |
| Details of the violation(s)/ contravention(s) committed or alleged to be committed | Taxability of Income from Foreign Branches and Broken period interest paid on purchase of securities. |
| Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible | The Bank has received a demand order of ₹457.25 Crores under section 156 of the Income Tax Act, 1961, pertaining to AY 2019-20 The Bank is under the process of filing an appeal before the Commissioner of Income Tax (appeals), National Faceless Appeal Centre (NFAC)/ Writ Petition before Hon'ble High Court (as may deems fit) against the said order within the prescribed timelines. Looking to the precedence/ orders of appellate Authorities, the Bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter. Accordingly, the Bank expects the entire demand to subside. As such, there is no impact on financial operations or other activities of the Bank.. |
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