Tamilnad Mercantile Bank Limited Receives Monetary Demand from Income Tax Department
Tamilnad Mercantile Bank Limited announced that the Assessment Unit, Income Tax Department, issued a Notice of Demand under Section 156 of the Income Tax Act, 1961, on March 30, 2026. The demand amounts to Rs. 5,36,62,680 (Rupees Five Crore Thirty-Six Lakh Sixty-Two Thousand Six Hundred Eighty Only).The order, dated March 30, 2026, under Section 143(3) read with Section 144B, disallowed an amount under Section 14A read with Rule 8D of the Income Tax Act, 1961, for Assessment Year 2024-25.
According to the company, the Bank is in the process of filing an appeal, which is expected to be passed in favor of the Bank. The demand notice is not expected to have a material impact on the bank’s financial statement.
Here's a summary of the details:
| S.No. | Particulars | Description |
|---|---|---|
| 1 | Name of the authority | Assessment Unit, Income Tax Department |
| 2 | Nature and details of the action(s) taken, initiated or order(s) passed | Raised a demand of Rs. 5,36,62,680 (Rupees Five Crore Thirty-Six Lakh Sixty-Two Thousand Six Hundred Eighty Only) on the Bank, under the provisions of Section 156 of the Income Tax Act, by disallowing the amount under Section 14A read with Rule 8D of the Income Tax Act, 1961 for A.Y. 2024-25. |
| 3 | Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority | March 30, 2026. |
| 4 | Details of the violation(s) / contravention(s) committed or alleged to be committed | The Assessment Unit, Income Tax Department vide notice no. ITBA/AST/S/156/2025-26/1088126807(1) dated March 30, 2026, raised a demand by disallowing the amount under Section 14A read with Rule 8D of the Income Tax Act, 1961 for A.Y. 2024-25 |
| 5 | Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible. | A monetary demand of Rs. 5,36,62,680 (Rupees Five Crore Thirty-Six Lakh Sixty-Two Thousand Six Hundred Eighty Only) was imposed on the Bank. The Bank is in the process of filing an appeal and the same is expected to be passed in favour of the Bank. This demand notice would not have material impact on the bank's financial statement. |
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