Polycab India Limited has disclosed an update following a rectification order received on March 9, 2026, concerning the Assessment Year 2024-25. An initial tax demand of ₹327.45 crore has been substantially reduced to ₹57.58 crore due to computational errors. The company is initiating a further rectification application for an outstanding advance tax credit issue while maintaining that the remaining demand is unsustainable and preparing to file an appeal.
Receipt of Income Tax Rectification Order
Polycab India Limited has provided an update on a matter concerning the Income Tax Authority. The company received a Rectification Order on March 9, 2026, relating to the Assessment Year 2024-25 (Financial Year 2023-24).
Initial Assessment and Subsequent Reduction
The initial assessment order, received on March 3, 2026, under Section 143(3) of the Income Tax Act, 1961, included disallowances and additions totaling ₹41.87 crores, which resulted in a demand notice of ₹327.45 Crores. However, following the company’s application for rectification under Section 154 due to computational/clerical errors, the Income-tax Department issued a rectification order. This action has successfully reduced the aggregate income-tax demand from ₹327.45 crore down to ₹57.58 crore.
Ongoing Tax Position and Next Steps
The company, in consultation with its tax advisors, is of the opinion that the revised demand of ₹57.58 crore remains due primarily because of a non-granting of advance tax credit, which itself is rectifiable under Section 154 of the Act. Accordingly, the company has initiated the process for filing an application for rectification before the jurisdictional Assessing Officer.
Furthermore, the company maintains the position that the tax demand arising from the original assessment order is not sustainable in law. Consequently, the company is in the process of filing an appeal against the remaining additions made in the initial order, pursuant to the applicable provisions of the Income-Tax Act, 1961.
Expected Financial Impact
The company states that it does not expect any material impact on its financials position or operations on account of the said order at this time.
Source: BSE
