Indian Overseas Bank (IOB) has acknowledged receipt of a Demand Notice under Section 156 of the Income Tax Act, 1961, from the Deputy Commissioner of Income-tax, Chennai. The notice, dated March 9, 2026, pertains to Assessment Year 2017-18 and demands an amount of ₹502.29 crore. IOB is actively challenging the order and expects the entire demand to be disputed and potentially subsided.
Official Disclosure of Tax Assessment Notice
Indian Overseas Bank (IOB) has formally disclosed the receipt of a communication from the Income Tax Department concerning tax assessments. The notification was received on March 9, 2026, from the Joint Commissioner of Income-tax, Non-Corporate Circle-8, Chennai.
Details of the Demand Notice
The material content of the communication is a Demand Notice issued under Section 156 of the Income Tax Act, 1961. This notice demands a significant amount of Rs. 502,29,08,834/- (Rupees Five hundred two crore, twenty-nine lakh, eight thousand, eight hundred thirty-four only) concerning the Assessment Year (AY) 2017-18. The demand arises from certain re-computations of income and disallowances made by the authority against claims in the Bank’s income tax returns.
Bank’s Response and Expected Impact
IOB has confirmed that it is in the process of challenging the said order. The Bank plans to file an appeal before the appropriate forum within the prescribed timelines against the disallowances and additions made in the order. The Bank states that, looking to previous Precedence/Orders of appellate authorities, it possesses adequate factual and legal grounds to substantiate its position. Consequently, IOB expects that the entire demand will subside, and as such, no immediate impact is expected on the Bank’s financial position, operations, or other activities.
The period for which the communication would be applicable is stated as Not Applicable, and there are currently Nil expected financial implications on the listed entity based on the Bank’s intention to dispute the demand entirely.
Source: BSE
