Mumbai — Tata Capital has received a tax reassessment order amounting to ₹413 crore from the Mumbai Income Tax Department for the financial year 2017–18. The company has stated it will take necessary steps to file a rectification appeal.
The order, issued on March 20, 2026, relates to Tata Capital Financial Services Limited, which was merged into Tata Capital Limited effective April 1, 2023. It was passed by the Deputy Commissioner of Income Tax under Sections 143(3) and 147 of the Income Tax Act.
Out of the total demand of ₹413.18 crore, a significant ₹202.72 crore is attributed to interest. The tax department has raised the demand citing alleged short credit of taxes already paid, along with certain disallowances.
However, Tata Capital has disputed the calculation, pointing out apparent errors in the computation. According to the company, the assessing officer failed to properly account for taxes already paid by Tata Capital Financial Services Limited.
The firm claims that instead of considering ₹225.89 crore paid through TDS, TCS, and advance tax, the officer only accounted for ₹16.36 crore paid by Tata Capital Limited. This, it argues, led to an incorrect shortfall of ₹209.52 crore and inflated interest charges.
In its regulatory filing, the company said the entire demand is not sustainable and is based on incorrect calculations. It added that it does not expect any material financial impact at this stage and remains confident of a favourable outcome.
Tata Capital also clarified that the issue will not affect its financial position, operations, or overall business activities.
With inputs from IANS