CHENNAI — Indian Overseas Bank (IOB) has received an income tax demand notice totaling more than ₹766 crore (approximately $92 million) for the assessment year 2015–16, the bank disclosed in a regulatory filing on Tuesday.
The notice was issued under Section 156 of the Income Tax Act, 1961, by the Deputy Commissioner of Income-tax, Non-Corporate Circle-8, Chennai. IOB said it received the communication on March 2. The demand follows an order passed by the Income Tax Appellate Tribunal (ITAT) on December 31, 2024.
Basis of the Demand
According to the filing, the tax claim arises from disallowances and re-computation of income by tax authorities for the financial year 2014–15.
The notice also states that penalty proceedings under Section 271(1)(c) of the Income Tax Act may be initiated separately. However, no penalty has been imposed at this stage.
Bank to Challenge Order
IOB said it is in the process of filing an appeal before the appropriate appellate authority within the prescribed timelines.
“The Bank is in the process of filing an appeal before the appropriate forum against the disallowances/additions made in the said order,” the lender said in its statement to stock exchanges.
The bank expressed confidence in its legal position, citing past precedents and favorable appellate rulings in similar matters. It added that it expects relief through the appeals process.
“Considering the expected relief, the Bank expects that the entire demand will subside. As such, no impact is expected on financial, operations or other activities of the Bank,” the filing noted.
Regulatory Compliance
The disclosure was made in accordance with SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, which require listed companies to report material developments involving statutory authorities.
Headquartered in Chennai, Indian Overseas Bank is one of India’s major public sector lenders, with operations across the country.