Federal Bank has confirmed receiving official orders from the Income Tax Department, confirming a significant refund for the Assessment Year 2016-17. The total refundable amount, inclusive of interest under Section 244A of the Income-tax Act, stands at ₹322,62,67,421. The order, issued on March 26, 2026, gives effect to a ruling previously made by the Hon’ble ITAT on August 13, 2024. The bank has informed the stock exchanges of this development.
Confirmation of Tax Refund Order
Federal Bank has formally announced the receipt of official orders pertaining to its tax assessments. The announcement confirms that the Bank was issued orders by the Income Tax Department, Corporate Circle 2 (1), Kochi, on March 27, 2026. These orders formally effectuate a ruling previously passed by the Hon’ble ITAT dated August 13, 2024.
Significant Financial Implication
The primary highlight of these orders is the confirmation of a substantial refund due to the Bank for the Assessment Year (AY) 2016-17. The total amount refundable, which encompasses interest calculated under Section 244A of the Income-tax Act, is precisely ₹322,62,67,421/- (Rupees Three hundred twenty two crore sixty two lakhs sixty seven thousand four hundred and twenty one only). This refund brings finality to the tax matters concerning that specific assessment period.
Regulatory Compliance
The Bank executed this disclosure to satisfy regulatory requirements concerning material events. The communication, dated March 28, 2026, was directed to the stock exchanges in Mumbai, citing the relevant Scrip Symbol FEDERALBNK for record-keeping purposes.
Source: BSE
