Tata Capital Faces ₹413 Crore Tax Demand for FY18, Plans Legal Challenge
Reassessment Order Issued by Tax Authorities
Tata Capital has received a reassessment order from tax authorities demanding ₹413.18 crore for the financial year 2017-18, according to a regulatory filing. The order was issued by the Deputy Commissioner of Income Tax, Mumbai, under the Income-tax Act and was uploaded on March 20, 2026.The demand pertains to Tata Capital Financial Services Ltd (TCFSL), which has since been merged with Tata Capital effective April 1, 2023.
Breakdown of Tax Demand and Key Issues
The total demand includes ₹209.52 crore in tax and ₹202.72 crore in interest. Tata Capital stated that the demand primarily arises due to an alleged short credit of taxes paid along with certain disallowances.According to the company, the issue stems from apparent computation errors. It noted that the assessing officer incorrectly granted tax credit to Tata Capital instead of TCFSL, resulting in a shortfall in credit and a consequential levy of interest.
Company Disputes Demand, Calls It Unsustainable
Tata Capital has firmly contested the tax demand, stating that the entire amount is not sustainable. The company has indicated that it will initiate corrective legal action.“We will take necessary steps to file a rectification application or appeal. We expect a favourable outcome in respect to the above matter,” the company said.
Additional Appeals on Disallowances
Apart from the reassessment order, Tata Capital also disclosed that it has filed or is in the process of filing appeals against disallowances involving a tax impact of ₹26.31 crore.The company expressed confidence in securing relief, citing strong legal grounds and existing judicial precedents supporting its position.
No Expected Impact on Business Operations
Tata Capital clarified that it does not anticipate any material impact on its financials, operations, or overall business due to the reassessment order.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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