Tata Capital gets Rs 413 cr I-T notice
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Mumbai: Tata Capital has received an income tax reassessment order of Rs413 crore from the Mumbai tax authority for FY2017-18 and will file a rectification appeal.
The order, issued on March 20, 2026, pertains to Tata Capital Financial Services Limited, which was merged with Tata Capital Limited effective April 1, 2023.
Passed by the Deputy Commissioner of Income Tax under Sections 143(3) and 147 of the Income Tax Act, the total demand stands at Rs413.18 crore, including Rs202.72 crore in interest. The demand arises largely 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. According to the company, the assessing officer failed to properly account for taxes already paid by Tata Capital Financial Services Limited. Against a total tax credit of Rs225.89 crore, including TDS, TCS and advance tax, only Rs16.36 crore paid by Tata Capital Limited was considered.
As a result, the company said the tax demand and the interest levied are not sustainable.
