Indian Overseas Bank Receives Demand Notice for Rs. 642.74 Crores
Indian Overseas Bank announced on March 27, 2026, that it received a demand notice from the Income-tax Department regarding a tax liability for the Assessment Year 2016-17. The notice, received on March 26, 2026, advises the bank to pay an amount of Rs. 642.74 Crores.The demand follows an order from the Income Tax Appellate Tribunal (ITAT) ITA No. 202 & 253/Chny/2023, dated December 31, 2024, implemented under Section 254 read with Section 143(3) of the Income Tax Act, 1961. The notice originated from the Joint Commissioner of Income-tax (in-situ), Non-Corporate Circle-8, Chennai.
Indian Overseas Bank stated that it is in the process of challenging the order in the appropriate forum and believes it has adequate grounds to reasonably substantiate its position. The bank anticipates that the entire demand will subside. As such, no impact is expected on financial, operations or other activities of the Bank.
According to a filing, the bank has identified re-computation of income and disallowances made with regard to claims made in the income tax returns as aberrations. No penalty or restriction has been imposed.
| Particulars | Details |
|---|---|
| Name of the listed entity | Indian Overseas Bank |
| Date of receipt of communication & Authority from whom communication received | The demand for Rs. 642.74 Crores was received on 26.03.2026 from Joint Commissioner of Income-tax (in-situ), Non- Corporate Circle-8, Chennai- 600034. |
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