Indian Overseas Bank Receives Demand Notice for Rs. 1742.96 Crores from Income Tax Department
Indian Overseas Bank announced today, March 27, 2026, that it received a demand notice from the National Faceless Assessment Unit (NFAC) of the Income Tax Department. The notice, dated March 26, 2026, advises the bank to pay an amount of Rs. 1742.96 Crores as a tax liability for the Assessment Year 2024-25.The bank is currently challenging the assessment order in the appropriate forum and plans to appeal against the disallowances and additions outlined in the order. Indian Overseas Bank believes it has adequate grounds to reasonably substantiate its position and anticipates a favorable resolution. The bank expects the demand will subside. The company stated that it does not anticipate any material financial, operational, or other activities impact.
Table: Disclosure Regarding Communication from Regulatory Authority
| Particulars | Details |
|---|---|
| Name of the listed entity | Indian Overseas Bank |
| Type of communication received | Demand Notice under Income Tax Act |
| Date of receipt of communication | March 27, 2026 |
| Authority | National Faceless Assessment Unit (NFAC) of Income Tax Department |
| Material Contents | An assessment order under Section 143(3) read with Section 144B of Income Tax Act, 1961, advising payment of Rs. 1742.96 Crores for Assessment Year 2024-25. |
| Expected Financial Implications | Nil |
| Details of Aberrations | Re-computation of income and disallowances made with regard to claims made in the income tax returns. |
| Penalty or Restriction | Nil |
| Actions Taken | The Bank is in the process of filing an appeal against the order. |
Raghuram Mallela, Deputy General Manager and Company Secretary & Compliance Officer, provided the disclosure.
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