Tata Capital served Rs 413 crore tax notice, plans to contest reassessment

New Delhi: Non-banking finance company Tata Capital has received a reassessment order from tax authorities, raising a demand of Rs 413.18 crore for the financial year 2017-18, the firm said.

The order, issued by the Deputy Commissioner of Income Tax, Mumbai, under the Income-tax Act and uploaded on March 20, 2026, pertains to Tata Capital Financial Services Ltd (TCFSL), which has since been merged with Tata Capital with effect from April 1, 2023.

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The demand includes interest of Rs 202.72 crore and primarily arises due to alleged short credit of taxes paid and certain disallowances, Tata Capital said in a stock exchange filing on Saturday.

However, the company said the demand is based on apparent errors in the computation. It stated that the assessing officer incorrectly allowed a tax credit for Tata Capital instead of TCFSL, leading to a shortfall in credit and consequential interest levy.

Tata Capital said the entire demand, comprising Rs 209.52 crore of tax and Rs 202.72 crore of interest, is not sustainable.

The company said, "It will take necessary steps to file rectification application/ appeal. The company expects a favourable outcome in respect to the above matter".

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Also, the company said it has filed or is in the process of filing appeals against disallowances with a tax impact of Rs 26.31 crore. It expressed confidence in receiving relief, citing strong legal grounds and judicial precedents.

"Based on our current assessment, we expect favourable orders on these disallowances since there are strong grounds and judicial precedent in respect of the disallowances made in the order," Tata Capital said.

The company added that it does not expect any material impact on its financials, operations, or business due to the order.