Tamilnad Mercantile Bank has been issued a Notice of Demand by the Assessment Unit of the Income Tax Department, amounting to ₹17,75,40,410. The demand, dated 30 March 2026, was received by the bank on 31 March 2026.
The notice was issued under Section 156 of the Income Tax Act, 1961, following the disallowance of a claim made by the bank under Section 36(1)(viia) for the assessment year 2016-17. This decision was formalised in an order dated 30 March 2026, under section 143(3) read with section 254 and section 144B of the Income Tax Act.
The bank has stated that it is in the process of filing an appeal against the demand and expects the outcome to be favourable. Tamilnad Mercantile Bank also noted that the demand notice is not anticipated to have a material impact on its financial statements.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).