Muthoot Finance Limited has informed the Exchange about Action(s) initiated or orders passed
MUTHOOTFIN · price
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The Office of the Assistant Commissioner of Income Tax, Central Circle 1, Kochi has passed an order dated March 30, 2026, raising an income tax demand of approximately Rs. 977.81 crore on Muthoot Finance under Section 143(3) of the Income Tax Act, 1961. The tax authority disallowed expenses relating to ESOP discount, non-deduction of TDS on certain foreign payments, and bad debt write-offs, and assessed income at the old tax regime rate of 34.944% instead of the new regime rate of 25.168%. The company has stated that the basis of the demand is not tenable and is in the process of filing an appeal. Muthoot Finance has clarified that there is no material impact on its financial position, operations, or other activities from this order.
Despite the large headline size of the demand (nearly Rs. 978 crore), the company has publicly stated there is no material financial impact, which should reassure investors in the short term. However, if the appeal fails, this could become a significant liability, so investors should watch for updates on the appeal outcome.