Muthoot Finance Faces ₹977.81 Crore Tax Demand
Muthoot Finance Limited announced that the Office of the Assistant Commissioner of Income Tax, Central Circle 1, Kochi, issued an order on March 30, 2026, imposing a tax demand of ₹977,81,10,347.The company stated that it believes the basis for the additional tax demand is not tenable and plans to file an appeal. Muthoot Finance affirmed that the order will not materially impact its financial, operational, or other activities.
The tax demand stemmed from disallowances related to ESOP discounts, non-deduction of TDS on foreign payments, and disallowance of expenses for bad debts write-off. Additionally, the assessing officer assessed the income at a rate of 34.944% instead of 25.168%, alleging the claiming of certain expenses as deductions under Chapter VIA of the Income Tax Act, 1961.
Here’s a summary of the details released by the company:
| Detail | Information |
|---|---|
| Authority | Office of the Assistant Commissioner of Income Tax, Central Circle 1, Kochi |
| Action | Order dated March 30, 2026, imposing a Tax Demand of ₹977,81,10,347 |
| Date of Order | March 30, 2026 |
| Reasons for Demand | Disallowances related to ESOP discount, TDS on foreign payments, bad debts write-off, and income tax rate assessment. |
| Impact | No material impact on financial, operational, or other activities of the Company. |
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