Legal31 Mar 2026, 05:22 pm
Muthoot Finance Faces Rs. 977 Crore Tax Demand from Income Tax Department
AI Summary
Muthoot Finance Ltd. has disclosed a tax demand of Rs. 977,81,10,347/- (Rs. 977 crore) raised by the Office of the Assistant Commissioner of Income Tax, Central Circle 1, Kochi. The Company believes that the basis of this additional tax demand is not tenable and is preparing to file an appeal. The Order is not expected to have a material impact on the Company's financial, operational, or other activities.
Key Highlights
- Muthoot Finance received a tax demand of Rs. 977 crore from the Office of the Assistant Commissioner of Income Tax, Central Circle 1, Kochi.
- The Company is preparing to file an appeal against the tax demand, stating that the basis of the demand is not tenable.
- The tax demand is related to disallowances made in respect of ESOP discount, non-deduction of TDS on certain foreign payments, and disallowance of expenses claimed for bad debts write off.
- The Assessing Officer has assessed the entire income at the old regime rate of 34.944% instead of the new regime rate of 25.168%.
- Muthoot Finance stated that there is no material impact on financial, operational, or other activities of the Company due to the Order.