The Income Tax Department has sent a notice to Yes Bank, demanding a tax payment of ₹2,209 crore for the 2019-20 assessment year. This amount includes an interest charge of ₹243.02 crore. The bank shared this information in an official regulatory filing.
Income Tax Reassessment Order Details
Yes Bank explained in its filing that the National Faceless Assessment Unit of the Income Tax Department issued a reassessment order on March 28. Interestingly, the order did not include any new tax disallowances. This means the reasons for which the reassessment was initially started have now been removed.
However, despite no changes being made to the bank’s previously assessed income, the Income Tax Department has still raised a tax demand of ₹2,209.17 crore, which includes interest. This tax demand was issued under Section 156 of the Income Tax Act, along with a calculation sheet. Yes Bank believes that this demand has no proper basis since the original assessment order under Section 144 remains unchanged.
Yes Bank’s Response and Next Steps
The Income Tax Department had reopened the 2019-20 tax assessment in April 2023, leading to this reassessment. However, Yes Bank has strong grounds to challenge the order. The bank stated that this tax demand will not impact its financial stability, daily operations, or overall business activities.
To resolve this matter, Yes Bank plans to appeal and start correction proceedings under the law. The bank is confident that it can substantiate its position and that the reassessment order will not negatively affect its performance.
Conclusion
This case highlights the complexities of income tax assessments and the challenges businesses face when dealing with unexpected tax demands. Yes Bank remains firm in its stance and is preparing to legally address the issue.
