Tamilnad Mercantile Bank Receives Income Tax Demand of Rs. 1775.4 Million
Tamilnad Mercantile Bank Limited announced that the Assessment Unit, Income Tax Department, issued a demand notice of Rs. 17,75,40,410 (Rupees Seventeen Crore Seventy-Five Lakh Forty Thousand Four Hundred Ten Only) on March 31, 2026.The demand, communicated via a notice dated March 30, 2026, stems from the disallowance of a claim made under Section 36(1)(viia) of the Income Tax Act, 1961 for Assessment Year 2016-17.
According to the Assessment Unit, the action was taken under Section 156 of the Income Tax Act, 1961. The bank intends to file an appeal and anticipates a favorable outcome. Management stated that the demand is not expected to have a material impact on the bank's financial statements.
| 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.17,75,40,410/- (Rupees Seventeen Crore Seventy-Five Lakh Forty Thousand Four Hundred Ten Only) on the Bank, under the provisions of section 156 of the Income Tax Act, disallowing the claim made under Section 36(1) (viia) of the Income Tax Act, 1961 for A.Y. 2016-17 |
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