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SBI Hit with Massive Rs 63,375 Crore Tax Demand, Vows to Appeal

The State Bank of India has received a colossal income tax demand notice totaling Rs 63,375 crore for the assessment year 2023-24. The bank stated the demand stems from certain disallowances made by the tax department's assessment unit. SBI plans to challenge the order by filing an appeal with the appropriate appellate authorities, noting similar issues are already under litigation for past years. The bank assured that this tax demand will not affect its daily operations or overall business activities.

Key Points: SBI Gets Rs 63,375 Crore Tax Notice, Plans Legal Challenge

  • Massive Rs 63,375 crore tax demand
  • Order dated March 19, 2026
  • Demand due to assessment disallowances
  • Bank to file appeal promptly
  • No impact on daily operations claimed
2 min read

SBI receives Rs 63,375 crore tax demand order

SBI receives a Rs 63,375 crore income tax demand for AY 2023-24. The bank says it will appeal the order, citing ongoing litigation on similar issues.

"SBI has received an order... in terms of which a demand of Rs 63,37,52,52,550 has been raised - SBI Regulatory Filing"

Mumbai, March 20

State Bank of India on Friday said it has received an income tax demand of Rs 63,375 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 63,375 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
Priyanka N
Good that SBI is challenging it. These huge retrospective demands create so much uncertainty. If it's for similar issues already in court, the IT department should wait for those verdicts instead of piling on new demands. Hurts business sentiment.
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Aman W
On one hand, every entity must pay its fair share of tax. On the other, such a massive demand on the country's largest bank raises questions. Hope the appellate process is swift and fair. The money involved could fund many infrastructure projects!
S
Sarah B
As an NRI with accounts in SBI, this is slightly worrying. They say it won't affect operations, but such a large contingent liability is never good. Hopefully, the appeal settles it quickly without long court battles.
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Karthik V
This is a classic case of government's left hand demanding money from its right hand. SBI is a public sector bank. Ultimately, it's public money going from one pocket to another, with lawyers and consultants earning fees in between. The system needs simplification.
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Nikhil C
The sheer size of the number is mind-boggling. Respectfully, I think the Income Tax Department should focus more on widening the tax net and chasing big evaders rather than getting into prolonged disputes with a compliant, systemically important bank like SBI. 🇮🇳

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