Shriram Finance Limited has announced a substantial downward revision of tax penalties originally levied against the erstwhile Shriram City Union Finance Limited. Following rectification orders received on March 30, 2026, the financial liability for the 2018-19 and 2019-20 fiscal years has been significantly lowered. This development provides relief to the company regarding its outstanding tax demand obligations.
Revised Financial Liabilities
Shriram Finance Limited has successfully secured a reduction in tax demands related to its erstwhile subsidiary, Shriram City Union Finance Limited, which merged with the entity in April 2022. The Commercial Tax Officer, Chennai South, issued formal rectification orders on March 30, 2026, which fundamentally altered the penalty and tax structures for two previous financial years.
Breakdown of Adjustments
For the fiscal year 2018-19, the original tax demand of Rs. 13,03,53,551 has been slashed to Rs. 70,42,822. Similarly, the accompanying interest and penalty figures were adjusted significantly downward, with the revised interest set at Rs. 84,98,852 and a reduced penalty of Rs. 70,42,822.
For the fiscal year 2019-20, the initial tax demand of Rs. 24,06,19,502 was corrected to Rs. 1,02,20,890. The interest liability for this period was revised to Rs. 1,06,00,042, and the penalty was reduced to Rs. 1,02,20,890.
Next Steps
The company confirmed that copies of these rectification orders were officially forwarded to the relevant authorities on April 1, 2026. These revisions represent a positive outcome for the company’s compliance efforts and financial standing regarding legacy tax matters.
Source: BSE
