NewKerala.com

Tata Capital Faces Rs 413 Crore Tax Notice, Plans Appeal

Tata Capital has received an income tax reassessment order demanding Rs 413.18 crore for the financial year 2017-18. The company states the demand stems from an alleged short credit of taxes already paid by a since-merged entity. Tata Capital has identified apparent errors in the computation sheet, arguing the tax officer incorrectly accounted for payments. The firm plans to file a rectification appeal and does not expect the order to impact its financials or operations.

Key Points: Tata Capital Gets Rs 413 Crore Tax Reassessment Notice

  • Rs 413 crore tax demand for FY18
  • Order cites short credit of taxes paid
  • Company identifies computation errors
  • Will file rectification appeal
2 min read

Tata Capital gets Rs 413 crore tax reassessment notice

Tata Capital receives a Rs 413 crore income tax reassessment order for FY18, citing errors and planning a rectification appeal.

"The Company does not envisage any material financial implication at this stage - Tata Capital"

Mumbai, March 22

Tata Capital has said it has received an income tax reassessment order of Rs 413 crore from the Mumbai tax authority for the financial year 2017-18 and will take necessary steps to file a rectification appeal.

The company said the order was issued on March 20, 2026, and downloaded a day later.

The reassessment pertains to Tata Capital Financial Services Limited, which has since been merged with Tata Capital Limited with effect from April 1, 2023.

According to the company, the order was passed by the Deputy Commissioner of Income Tax under Section 143(3) read with Section 147 of the Income Tax Act.

The total demand stands at Rs 413.18 crore, which includes Rs 202.72 crore in interest. The demand has been raised mainly due to alleged short credit of taxes paid, along with interest and certain disallowances.

However, Tata Capital said it has identified apparent errors in the computation sheet and does not expect any material financial impact at this stage.

"The Company does not envisage any material financial implication at this stage as there are certain errors apparent from records in the Computation Sheet," it added in its regulatory filing.

The company explained that the assessing officer did not correctly account for taxes already paid by Tata Capital Financial Services Limited.

Instead of giving credit of Rs 225.89 crore, including TDS, TCS and advance tax, the officer reportedly considered only Rs 16.36 crore paid by Tata Capital Limited.

As a result, the company said the tax demand and the interest levied are not sustainable. It added that the short tax credit of Rs 209.52 crore and the associated interest have been wrongly calculated.

"Consequent to the above demand, the tax department has further levied interest of Rs 202.72 crores erroneously. Hence, the entire demand (short tax credit of Rs 209.52 crores and interest levied thereon of Rs 202.72 crores) is not maintainable," the firm said in its exchange filing.

Tata Capital said it will file a rectification appeal and remains confident of a favourable outcome.

The company also maintained that the order will not have any impact on its financials, operations or other business activities.

- IANS

Share this article:

Reader Comments

P
Priya S
It's a huge amount, but if it's truly an error in the computation sheet as they claim, it should be rectified. The Tatas are a respected group, and I doubt they would evade taxes on such a scale. The merger of the entities seems to have caused confusion for the tax officer. Let's see how the appeal goes.
R
Rohit P
Rs 413 crore notice! 😳 This is massive. But the details are important. If the company already paid ~226 crores and the officer only considered 16 crores, then obviously the demand is wrong. The system should have better checks before issuing such large orders. It creates unnecessary panic.
S
Sarah B
Interesting case study in corporate tax compliance post-merger. The complexity of Indian tax laws, especially with mergers and credits for TDS/advance tax, can lead to these disputes. Hopefully, the rectification process is swift. Clarity in such matters is good for overall business confidence.
V
Vikram M
A respectful criticism: While the tax department might have erred, big corporates also need to ensure their filings are crystal clear to avoid such confusion, especially during mergers. The common taxpayer doesn't have the resources to fight a 400-crore notice. The process needs to be fair for everyone, big or small.
K
Karthik V
The amount of interest levied is almost equal to the principal shortfall claimed. That seems excessively high for what appears to be a procedural issue from 7-8 years ago. The tax department should focus on actual evaders rather than creating such high-stakes disputes with established groups over technicalities.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50