Novartis India Limited Receives Demand Notice and Issues Appeal Plans
Mumbai – March 27, 2026 – Novartis India Limited announced today that it received a Demand Notice and Order from the Assistant Commissioner of Income-tax, TDS Circle 2(3) regarding proceedings concluded under Sections 201(1)/201(1A) of the Income-tax Act, 1961, for Assessment Year 2020-21 (financial year ended March 31, 2020).The Demand Notice, received on March 26, 2026, and the subsequent Order received on March 27, 2026, relate to alleged non-compliance with tax deducted at source provisions pertaining to margin to stockist and interest on MSMEs.
The total demand amounts to INR 10,28,40,780, which includes INR 5,75,85,157 and interest under section 201(1A) of INR 4,52,55,623. The TDS order also mentions the initiation of a penalty under section 271C of the Act.
Novartis India Limited plans to file an appeal against the TDS order and has also indicated its intent to seek a stay of the demand. The company stated it will provide updates on any further developments.
| Particulars | Details |
|---|---|
| Name of the Authority | Assistant Commissioner of Income-tax, TDS, TDS Circle 2(3) |
| Nature and details of the action(s) taken, initiated or order(s) passed. | Notice of demand under Section 156 of the Income-tax Act, 1961 ( pertaining to Order issued u/s 201(1)/ 201(1A) of the Act for Assessment Year 2020-21 (i.e. financial year ended 31 March 2020). Act') |
| Details of the violations / contraventions alleged to be committed. | Alleged non-compliance with tax deducted at source provisions pertaining to alleged margin to stockist and interest on MSMEs. |
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