Federal Bank has announced the receipt of official orders from the Income Tax Department directing a significant aggregate refund. The total amount refundable to the Bank, including interest under Section 244A, is ₹489,60,20,918 (Rupees four hundred eighty-nine crore sixty lakh twenty thousand nine hundred and eighteen only). These orders pertain to the assessment years AY 2015-16 and AY 2017-18 and give effect to a prior order by the ITAT.
Receipt of Favorable Tax Assessment Orders
The Federal Bank Limited formally disclosed the receipt of recent directives from the Income Tax Department, specifically from Corporate Circle 2 (1), Kochi. These directives, received on March 26, 2026, formalize previous rulings by implementing the Hon’ble ITAT order dated August 13, 2024.
Aggregate Refund Amount Confirmed
As a direct result of these implementing orders, the Bank is entitled to an aggregate refund. The total financial benefit is calculated at ₹489,60,20,918/-. This figure encompasses the principal amounts plus applicable interest calculated under Section 244A of the Income-tax Act.
Applicable Assessment Years
The refund is allocated across two distinct financial periods:
- Assessment Year (AY) 2015-16
- Assessment Year (AY) 2017-18
The management confirmed that the refund amount totals Four hundred eighty-nine crore sixty lakh twenty thousand nine hundred and eighteen rupees, signaling a positive resolution concerning these past tax assessments.
Source: BSE
