Tata Capital faces Rs 413 cr tax demand for FY2017-18

New Delhi: Tata Capital has received a reassessment order from tax authorities raising a demand of Rs 413.18 crore for financial year 2017-18, the company said.

The order, issued by the Deputy Commissioner of Income Tax, Mumbai, relates to Tata Capital Financial Services Ltd (TCFSL), which merged with Tata Capital effective April 1, 2023.

The demand comprises Rs 209.52 crore in tax and Rs 202.72 crore in interest, largely due to alleged short credit of taxes paid and certain disallowances. The firm, however, said the demand stems from apparent computation errors.

It noted that the assessing officer wrongly allowed tax credit to Tata Capi-tal instead of TCFSL, resulting in a shortfall and additional interest.

The company maintained that the entire demand is unsustainable and said it will file rectification appli-cations and appeals. It expects a favourable outcome.

The company said it has filed or is in the process of filing appeals against disallowances involving Rs 26.31 crore, citing strong legal grounds and judicial precedents, adding that it does not expect any material impact on its financials, operations, or overall business from the order.