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SBI Hit with Rs 6,337 Crore Tax Demand, Vows to Challenge Order

State Bank of India has received an income tax demand order totaling Rs 6,337.5 crore for the assessment year 2023-24. The bank stated the demand stems from certain disallowances made by the tax department's assessment unit on various grounds. SBI clarified that it is already in litigation over similar issues from previous financial years and plans to appeal this latest order. The lender assured that the demand will not affect its day-to-day operations or business activities.

Key Points: SBI to Challenge Rs 6,337 Crore Income Tax Demand Notice

  • Rs 6,337.5 crore tax demand
  • Notice for assessment year 2023-24
  • Bank to file appeal
  • Similar issues under past litigation
  • No impact on daily operations
2 min read

SBI receives Rs 6,337 crore tax demand order, says will challenge it

State Bank of India receives a massive Rs 6,337.5 crore tax demand for AY 2023-24 and says it will appeal the order, citing ongoing litigation.

"SBI will take necessary steps to contest the order. - Regulatory Filing"

Mumbai, March 20

State Bank of India on Friday said it has received an income tax demand of Rs 6,337.5 crore for the assessment year 2023-24 and said it will challenge the order.

The public lender lender informed stock exchanges that it has received a tax demand notice from the Income Tax Department following scrutiny assessment proceedings.

The order, dated March 19, 2026, includes a total demand of Rs 6,337.5 crore, which also covers interest.

The bank said the demand has been raised due to certain disallowances made by the assessment unit on multiple grounds.

In its regulatory filing, State Bank of India noted that similar issues are already under litigation for previous financial years, indicating that the matter is not entirely new.

"SBI has received an order under Section 143(3) read with section 144C(3) and 144B of the Income Tax Act from the Assessment Unit, Income Tax department, in terms of which a demand of Rs 63,37,52,52,550 has been raised pursuant to the scrutiny assessment proceedings conducted for AY 2023-24," SBI said in its filing.

The country's largest lender said it will take necessary steps to contest the order. It plans to file an appeal before the appropriate appellate authorities within the prescribed timeline.

"In the said order, the Assessment Unit has made disallowances on various grounds. The Bank is already in litigation on similar grounds in the earlier years. Since, the aggregate amount involved in the above order exceeds the materiality threshold, the matter is being reported," SBI stated.

The bank also clarified that the tax demand will not have any impact on its day-to-day operations or overall business activities.

"There is no impact on operations or other activities of the Bank due to the Order," it added.

- IANS

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Reader Comments

P
Priya S
As an SBI account holder, this news is a bit concerning. They say operations won't be impacted, but such a huge demand must tie up resources. The fact that similar issues are under litigation for previous years suggests a systemic problem. The Income Tax department and large PSUs need clearer guidelines to avoid these recurring disputes.
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Aman W
Typical. Big entities and tax disputes go hand in hand. The amount is eye-watering for a common person like me, but for SBI, it's probably just another legal battle. What matters is the final outcome and transparency. The bank should explain the "certain disallowances" in simpler terms to the public.
S
Sarah B
From a governance perspective, this highlights the need for more efficient dispute resolution mechanisms. If issues are recurring year after year, it points to ambiguous tax laws or aggressive interpretations by either side. This legal uncertainty isn't good for India's financial ecosystem.
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Karthik V
Respectfully, while SBI is our largest bank and I trust it, such news does shake confidence a little. The order is dated March 2026? That seems like a typo in the article (should be 2024?). Anyway, hope the appeal process is swift. The government and its own bank shouldn't be locked in such costly fights. 🙏
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Nikhil C
The sheer scale of the number - Rs 63,37,52,52,550 - is mind-boggling when written out. This is taxpayers' money at the end of the day. Whether it's paid or not, the legal costs come from the bank's profits, which could have been used for better services

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