Indian Overseas Bank (IOB) has announced receiving an assessment order and a tax demand notice totaling Rs. 1,742.96 Crores from the Income-tax Department. This assessment pertains to the Assessment Year 2024-25. The Bank confirmed that it is actively challenging the order regarding the disallowances and additions made in the assessment. IOB currently expects no financial impact as it contests the entire demand on legal grounds.
Receipt of Significant Tax Assessment Order
Indian Overseas Bank (IOB) has formally notified the stock exchanges regarding the receipt of an official communication from the Income-tax Department. The communication was received on 27.03.2026 from the National Faceless Assessment Unit (NFAC).
The core of the notification is an assessment order issued under Section 143(3) read with Section 144B of the Income Tax Act, 1961. This order carries a substantial demand advising the Bank to remit an amount of Rs. 1,742.96 Crores, representing a demand for tax liability for the Assessment Year 2024-25.
Bank’s Response and Stance
The Bank confirmed that the communication detailed a Re-computation of income and disallowances made concerning claims submitted in the income tax returns.
In response to this demand, the Bank is currently in the process of filing an appeal before the appropriate appellate forum against the specified disallowances and additions. The Bank stated that it believes it possesses adequate factual and legal grounds to substantiate its position in the matter.
Expected Financial Implications
Regarding the expected financial implications for the entity, IOB has assessed the outcome as Nil. The Bank further stated that, considering the precedence of past appellate orders, it anticipates that the entire demand will subside upon resolution of the appeal. Consequently, no impact is expected on the financial stability, operations, or other activities of the Bank arising from this assessment order.
Source: BSE
