Yes Bank receives Rs 2,209 crore demand notice from Income Tax Department

No tax is due on bank

The bank said the total income, which was assessed in the original assessment order passed under section 144 of the Income Tax Act, has remained unchanged in the reassessment order, and as a result, no demand should have been raised against the bank. It, however, said that despite this, the computation sheet and the notice of demand issued under section 156 of the Act raise an income tax demand of Rs 2,209.17 crore, including interest of Rs 243.02 crore, which prima facie appears to be "without any basis".

Therefore, the bank believes that it has adequate grounds to reasonably substantiate its position in this matter and does not expect any material adverse impact on its financial, operation or other activities due to the said order, it said. The bank would pursue an appeal and rectification proceedings against the said reassessment order under the applicable law, it added.

(With PTI inputs)