Yes Bank Faces Rs 2,209.17 Crore Income Tax Demand
Yes Bank Ltd. has recently disclosed to the exchanges that it has received an income tax demand amounting to Rs 2,209.17 crore, including interest. This announcement follows an initial order received on September 30, 2021, regarding the assessment year 2019-20, during which the bank was granted a refund in accordance with the return of income it filed earlier. However, the income tax department reopened the case in April 2023.
The reassessment order was issued by the income tax department’s National Faceless Assessment Unit on March 28. In this order, the grounds that initially prompted the reassessment proceedings were subsequently dropped. The bank stated, “Hence, the total income which was assessed in the original assessment order should have remained unchanged and consequently, no demand should have been raised against the bank.
Yes Bank is confident that it has substantial grounds to defend its position regarding this matter and has clarified that it does not foresee any adverse impact on its operations. The bank’s disclosure further emphasized, “The bank would pursue an appeal and rectification proceedings against the said reassessment order under the applicable law.”
In terms of market performance, shares of Yes Bank closed 2.38% lower at Rs 16.88 apiece on Friday, underperforming against the benchmark NSE Nifty 50, which saw a decline of 0.31%. Over the past year, the shares of Yes Bank have experienced a significant drop of 27.24%, with a 13.83% decrease observed year-to-date.