Federal Bank announced receipt of official orders from the Income Tax Department concerning past assessment years. These orders give effect to a ruling by the Income Tax Appellate Tribunal (ITAT) dated August 13, 2024. The net result is a significant aggregate refund due to the Bank, including applicable interest under Section 244A, amounting to ₹686.31 crore for the Assessment Years 2011-12 through 2013-14.
Confirmation of Tax Refund Orders
Federal Bank has formally notified stock exchanges regarding the receipt of crucial orders from the Income Tax Department, Corporate Circle 2 (1), Kochi. These communications, received on February 18, 2026, implement the directives issued by the Hon’ble ITAT order dated August 13, 2024.
Significant Financial Implication
The core outcome of these directives is a substantial financial benefit for the Bank. The aggregate amount refundable to Federal Bank, which incorporates interest calculated under Section 244A of the Income-tax Act, is specified as ₹686,31,48,368/- (Rupees Six hundred eighty-six crore thirty-one lakh forty-eight thousand three hundred sixty-eight only).
Applicable Assessment Years
This significant refund amount pertains to the tax liabilities assessed across three preceding financial periods:
- Assessment Year 2011-12
- Assessment Year 2012-13
- Assessment Year 2013-14
The Bank requested the receiving departments to take this material financial update on record, confirming the successful resolution of the long-standing tax matter.
Source: BSE
