Bandhan Bank has received a tax demand notice from the Income Tax Department, amounting to ₹119.38 crore, including applicable interest, following a regular assessment under Section 143(3) read with Section 144B of the Income Tax Act, 1961. The notice was issued for Assessment Year 2023-24 (Financial Year 2022-23) under scrutiny assessment, according to a regulatory filing made by the bank to the exchanges on March 26.
The demand arises from the disallowance of certain expenditure and deductions claimed by the bank under various provisions of the Income Tax Act. The Faceless Assessment Unit of the Income Tax Department issued the order on March 25, 2025, citing violations related to such disallowances.
However, Bandhan Bank has clarified that it intends to file an appeal before the Higher Appellate Forums within the prescribed timelines. The bank stated that it has “adequate factual and legal grounds to reasonably substantiate its position” and expects the “substantial portion of the demand to subside.”
Importantly, the bank affirmed that there is no impact on its financial operations or other business activities due to this development.
“The Bank is under the process of filing an appeal and does not foresee any operational disruptions arising from the tax demand,” the company said in the exchange filing.
