Tanla Platforms Ltd. Receives Income Tax Demand Notice for Rs. 46,90,26,230 for FY 2018-19

Tanla Platforms Ltd. has received a Demand Notice under Section 156 of the Income-Tax Act, 1961 from the Income Tax Department for assessment year 2020-21. The demand, amounting to Rs. 46,90,26,230 (inclusive of interest), pertains to the alleged non-withholding or short-withholding of TDS on the asset-purchase consideration for FY 2018-19. The Company believes it has adequate legal and factual grounds to contest the demand and is taking necessary steps to protect its interest. As per the Share/Asset Purchase Agreement, any liability arising on account of future claims by the Income Tax Department relating to withholding tax on the purchase consideration is contractually borne by the Seller, hence the Company does not expect any material financial or operational impact.