Mumbai, March 22 (IANS) Tata Capital has said it has received an income tax reassessment order of Rs 413 crore from the Mumbai tax authority for the financial year 2017-18 and will take necessary steps to file a rectification appeal.

The company said the order was issued on March 20, 2026, and downloaded a day later.

The reassessment pertains to Tata Capital Financial Services Limited, which has since been merged with Tata Capital Limited with effect from April 1, 2023.

According to the company, the order was passed by the Deputy Commissioner of Income Tax under Section 143(3) read with Section 147 of the Income Tax Act.

The total demand stands at Rs 413.18 crore, which includes Rs 202.72 crore in interest. The demand has been raised mainly due to alleged short credit of taxes paid, along with interest and certain disallowances.

However, Tata Capital said it has identified apparent errors in the computation sheet and does not expect any material financial impact at this stage.

“The Company does not envisage any material financial implication at this stage as there are certain errors apparent from records in the Computation Sheet,” it added in its regulatory filing.

The company explained that the assessing officer did not correctly account for taxes already paid by Tata Capital Financial Services Limited.

Instead of giving credit of Rs 225.89 crore, including TDS, TCS and advance tax, the officer reportedly considered only Rs 16.36 crore paid by Tata Capital Limited.

As a result, the company said the tax demand and the interest levied are not sustainable. It added that the short tax credit of Rs 209.52 crore and the associated interest have been wrongly calculated.

“Consequent to the above demand, the tax department has further levied interest of Rs 202.72 crores erroneously. Hence, the entire demand (short tax credit of Rs 209.52 crores and interest levied thereon of Rs 202.72 crores) is not maintainable,” the firm said in its exchange filing.

Tata Capital said it will file a rectification appeal and remains confident of a favourable outcome.

The company also maintained that the order will not have any impact on its financials, operations or other business activities.

–IANS

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