I-T notice to Yes Bank: The reassessment order was passed by the National Faceless Assessment Unit of the income-tax department on March 28.
I-T notice to Yes Bank: Investors in Yes Bank shares may face volatility when the stock market opens on Tuesday, as the bank has received a Rs 2,209 crore demand notice from the Income Tax Department for the assessment year 2019-20. According to the bank’s regulatory filing, the Income Tax Department had reopened the assessment for this period in April 2023. The National Faceless Assessment Unit passed a reassessment order on March 28, without making any additional rejections or additions, effectively removing the grounds for reassessment. Currently, Yes Bank’s stock is trading at Rs 16.85, having declined by 25 per cent over the past six months. Market experts anticipate that this tax notice could further impact the stock price, potentially leading to another decline.
No tax is due on bank
The bank said the total income, which was assessed in the original assessment order passed under section 144 of the Income Tax Act, has remained unchanged in the reassessment order, and as a result, no demand should have been raised against the bank. It, however, said that despite this, the computation sheet and the notice of demand issued under section 156 of the Act raise an income tax demand of Rs 2,209.17 crore, including interest of Rs 243.02 crore, which prima facie appears to be “without any basis”.
Therefore, the bank believes that it has adequate grounds to reasonably substantiate its position in this matter and does not expect any material adverse impact on its financial, operation or other activities due to the said order, it said. The bank would pursue an appeal and rectification proceedings against the said reassessment order under the applicable law, it added.
(With PTI inputs)
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