Sai Life Sciences Limited has disclosed receipt of an Order dated March 18, 2026, from the Deputy Commissioner of Income Tax (International Taxation), Hyderabad. The order pertains to the alleged non-deduction of TDS on payments made to a non-resident for the assessment year 2020-21. The initial demand includes a tax component of INR 2.54 crore and an interest component of INR 1.99 crore. The company plans to file an appeal, anticipating no material financial impact.
Regulatory Disclosure on Tax Order
In compliance with required disclosures, Sai Life Sciences Limited formally notified the stock exchanges regarding an order received from the tax authorities. The Order was passed by the Deputy Commissioner of Income Tax (International Taxation), Hyderabad, on March 18, 2026, under Section 201 (1) of the Income Tax Act, 1961. This action addresses the alleged failure to deduct Tax Deducted at Source (TDS) on payments channeled to a non-resident entity.
Details of the Demand
The core subject of the demand relates to the assessment year 2020-21. The total liability quantified so far includes significant figures:
- Tax Component: INR 2,54,39,944
- Interest Component: INR 1,99,17,238
- Penalty: To be assessed and levied subsequently by the assessing officer.
Company Response and Financial Impact Assessment
Following internal evaluation, the Company has determined its immediate course of action. Based on the Company’s assessment, an appeal will be filed against this Order at the Appellate level. Management is reportedly hopeful of achieving a favourable outcome during the appeal process. Consequently, Sai Life Sciences Limited currently does not reasonably expect the said Order to have any material financial impact on the Company’s operations or finances.
Source: BSE
