NHPC Limited’s subsidiary, NHDC Limited, has received an income tax demand notice amounting to ₹231.78 crore, which includes interest of ₹45.31 crore, from the Income Tax Department. The notice was issued on 27th March 2026.
The demand notice pertains to the assessment year 2024-25, with the assessment order being passed by the Income Tax Department’s Faceless Assessment Unit on 26th March 2026. The intimation of the order was received by NHDC through SMS on 27th March 2026.
NHDC has identified a discrepancy in the computation of its income tax liability. The company had considered an eligible MAT Credit of ₹184.37 crore while computing its income tax, which was not accounted for by the assessing officer in the computation sheet. To address this issue, NHDC is initiating the process of filing an application under section 154 for rectification of the mistake in the computation of income tax liability.
Historically, NHDC has been claiming MAT Credit under section 115JAA regularly, and the same has been allowed by the Income Tax authority. Therefore, NHDC anticipates that there should not be any significant impact on its financial, operational, or other activities due to this tax demand.
In a separate development, NHPC Limited has increased its shareholding and voting rights in its subsidiary, Ratle Hydroelectric Power Corporation Limited (RHPCL), from 49.72% to 51%. This change follows the release of matching equity contribution by NHPC Limited and the subsequent allotment of equity shares to the company.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).