Tamilnad Mercantile Bank has received a significant monetary demand from the Income Tax Department, amounting to ₹2,04,23,11,454. The demand was raised following the disallowance of a claim under Section 36(1)(viia) of the Income Tax Act for the assessment year 2013-14.
The Assessment Unit of the Income Tax Department issued a Notice of Demand under Section 156 of the Income Tax Act, 1961. The notice, dated 17 March 2026, was received by the bank on 18 March 2026. It disallowed the bank’s claim, leading to the substantial tax demand.
The bank disclosed these details in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank is currently in the process of filing an appeal against the demand and expects the appeal to be resolved in its favour.
Despite the hefty demand, Tamilnad Mercantile Bank has indicated that this notice is not expected 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).
This article is written by Kinjal and reviewed by Aman Shukla before publication.