Tata Capital announced that it has been issued an income tax reassessment order amounting to Rs 413 crore by the Mumbai tax authority for the financial year 2017-18. The order, received on March 20, 2026, and downloaded a day later, pertains to Tata Capital Financial Services Limited, which merged with Tata Capital Limited on April 1, 2023.
The reassessment, conducted under Section 143(3) read with Section 147 of the Income Tax Act, includes a total demand of Rs 413.18 crore, with Rs 202.72 crore attributed to interest. This demand is primarily due to alleged short credit of taxes paid, interest, and certain disallowances.
Tata Capital has identified errors in the computation sheet and does not anticipate any significant financial impact at this stage. The company clarified that the assessing officer did not accurately consider taxes already paid by Tata Capital Financial Services Limited, resulting in an incorrect calculation of the tax demand and interest levied.
Tata Capital plans to file a rectification appeal and is optimistic about a positive resolution. The company assured that the order will not affect its financials, operations, or other business activities.
