The largest public sector bank in India – State Bank of India (SBI) has received a huge income tax demand notice of ₹63,37,52,52,550 (over ₹63,000 crore) from the Income Tax Department. This demand has been raised after a scrutiny assessment for the Assessment Year (AY) 2023–24.
The order includes disallowances made by the tax authorities on various grounds, which has resulted in the large tax demand, including interest. SBI also stated that it is already involved in litigation on similar issues in previous years, indicating that such disputes are ongoing.
SBI clarified that the tax demand will not impact its operations or normal business activities. The bank has also confirmed that it will take appropriate legal steps, including challenging the order before appellate authorities within the prescribed time limit. This development is significant due to the large amount involved, but SBI has assured that it will handle the matter legally and continue its operations without any disruption.
Income Tax Department issues demand notices after assessment of returns.
- Section 143(3): Regular scrutiny assessment of income tax return
- Section 144C(3): Final order after directions of Dispute Resolution Panel (DRP)
- Section 144B: Faceless assessment system (online process)
Process:
- Return is selected for scrutiny
- Tax officer examines documents and transactions
- Disallowances or additions may be made
- Final order is issued with tax demand (including interest)
What happens next?
- Taxpayer can accept or challenge the demand
- Appeal can be filed before appellate authorities
- Recovery process may start if demand is not stayed
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