Tata Capital Receives ₹413 Crore Tax Reassessment Order for FY18, Plans Rectification Appeal
Tax Demand Includes ₹202.72 Crore Interest Component
Mumbai, March 22: Tata Capital has disclosed that it has received a tax reassessment order amounting to ₹413.18 crore from the Mumbai tax authority for the financial year 2017-18. The company stated that it will initiate steps to file a rectification appeal against the order.According to the company, the reassessment order was issued on March 20, 2026, and was accessed a day later. The order has been passed by the Deputy Commissioner of Income Tax under Section 143(3) read with Section 147 of the Income Tax Act.
Reassessment Linked to Merged Entity
The reassessment pertains to Tata Capital Financial Services Limited, which has since been merged with Tata Capital Limited with effect from April 1, 2023.The total tax demand of ₹413.18 crore includes an interest component of ₹202.72 crore. The demand has primarily been raised due to an alleged short credit of taxes paid, along with interest charges and certain disallowances.
Company Flags Errors in Tax Computation
Tata Capital has indicated that it has identified apparent errors in the computation sheet provided with the reassessment order and does not foresee any material financial impact at this stage.In its regulatory filing, the company stated that the assessing officer failed to correctly account for taxes already paid by Tata Capital Financial Services Limited. Instead of recognizing ₹225.89 crore, including TDS, TCS, and advance tax, only ₹16.36 crore paid by Tata Capital Limited was considered.
Dispute Over Tax Credit and Interest Calculation
As per the company, this discrepancy has led to an inflated tax demand and interest calculation. Tata Capital highlighted that the short tax credit of ₹209.52 crore and the associated interest of ₹202.72 crore have been incorrectly computed.The company stated that the entire demand is not sustainable, citing errors in both tax credit recognition and interest levied.
No Impact on Financials, Business Operations
Tata Capital has affirmed that it will proceed with filing a rectification appeal and remains confident of a favourable resolution. The company also clarified that the reassessment order is not expected to have any impact on its financial position, operations, or overall business activities at this stage.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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