Tamilnad Mercantile Bank has received a monetary demand of Rs 5,36,62,680 from the Assessment Unit of the Income Tax Department, according to a regulatory filing dated 31 March 2026.
The demand was raised under Section 156 of the Income Tax Act, 1961, through notice no. ITBA/AST/S/156/2025-26/1088126807(1) issued on March 30, 2026. The Income Tax Department disallowed a specified amount under Section 14A read with Rule 8D of the Income Tax Act, 1961 for the assessment year 2024-25.
The demand stems from an order passed on March 30, 2026, by the Assessment Unit under Section 143(3) read with Section 144B of the Income Tax Act. The bank has disclosed the action in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
According to the filing, the bank is in the process of filing an appeal against the demand notice. The bank stated that it expects the appeal to be decided in its favour. Tamilnad Mercantile Bank further noted that the demand notice would not have a material impact on the bank’s financial statements.
The notice and subsequent disclosure have been submitted to both the National Stock Exchange of India Limited (NSE) and BSE Limited as required under SEBI regulations.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).