Bank of Baroda has disclosed the receipt of a significant demand notice dated March 30, 2026, from the Income Tax Department’s Faceless Assessment Unit concerning the Assessment Year 2019-20. The demand totals ₹457.25 Crores, relating to the taxability of foreign branch income and broken period interest. The Bank states there is no immediate impact on operations as it is preparing to appeal the order, believing it has strong grounds for relief.
Regulatory Disclosure of Tax Demand
In compliance with disclosure requirements, Bank of Baroda has formally notified the stock exchanges regarding a demand order received from the Income Tax Department. The communication was received on March 30, 2026, from the Faceless Assessment Unit (FAU).
Key Details of the Demand Notice
The disclosure outlines the following specifics as per Annexure-D:
- Issuing Authority: Faceless Assessment Unit (FAU), Income Tax Department.
- Action Taken: A demand order was issued under section 156 of the Income Tax Act, 1961.
- Amount Involved: The demanded amount is ₹457.25 Crores.
- Relevant Period: The demand pertains to the Assessment Year (AY) 2019-20.
- Alleged Violations: The core issues concern the Taxability of Income from Foreign Branches and the treatment of Broken period interest paid on purchase of securities.
Bank’s Response and Expected Impact
Bank of Baroda has confirmed that the receipt of this order has no impact on its current financial operations or other ongoing activities.
The Bank is actively engaged in the process of challenging the order. It plans to file an appeal before the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre (NFAC) or pursue a Writ Petition before the High Court, adhering to prescribed timelines. Management expresses confidence, stating that, based on previous precedents and its analysis, the Bank believes it has adequate factual and legal grounds to substantiate its position and anticipates the entire demand to subside.
Source: BSE
