Aditya Birla Capital Limited has received an income-tax demand of ₹194.54 crore for the assessment year 2025-26. The company clarified that this demand stems from a technical issue regarding the migration of tax credits following the amalgamation of its subsidiary, Aditya Birla Finance Limited. The organization confirmed that all corresponding income has already been offered for taxation and expects no material financial or operational impact from this procedural notice.
Background of the Tax Demand
Following the March 24, 2025, order from the National Company Law Tribunal, Aditya Birla Finance Limited (ABFL) was successfully amalgamated into Aditya Birla Capital Limited. In alignment with this merger, the company filed a consolidated income tax return for the financial year 2024-25, incorporating the financial results of the subsidiary.
Details of the Disputed Amount
The company claimed credit for ₹222 crore in advance tax and ₹816 crore in tax deducted at source (TDS), both of which were originally paid or deposited under ABFL’s tax account number. The Income Tax Department’s notice dated May 15, 2026, indicates that these specific advance tax credits were not granted, leading to the reported demand of ₹194.54 crore.
Resolution Strategy
Aditya Birla Capital has identified the issue as purely technical, resulting from the non-migration of tax records between entities during the amalgamation process. The company maintains that there is no actual short payment of taxes. Moving forward, the management plans to file a formal application for rectification with the Income Tax Department to ensure the correct credits are applied to its account. The company has explicitly stated that it foresees no material impact on its overall financial health or operational capabilities.
Source: BSE
