Tamilnad Mercantile Bank Limited has informed the Exchange regarding rectification order received from the Income Tax Department under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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Tamilnad Mercantile Bank received a rectification order from the Deputy Commissioner of Income Tax, Circle 1, Tirunelveli, significantly reducing a tax demand for Assessment Year 2013-14. The original demand notice issued in March 2026 was for Rs. 2,04,23,11,454 (approximately Rs. 204 crore), which has now been reduced to Rs. 2,93,39,404 (approximately Rs. 2.93 crore). The dispute originated from the Income Tax Department disallowing the bank's claim under Section 36(1)(viia) of the Income Tax Act, 1961. The bank clarified that this revised amount would not have a material impact on its financial statements.
The substantial reduction in the tax demand is a positive development for the bank, as the revised liability is less than 1.5% of the original demand. The bank has confirmed no material financial impact, which should be reassuring for shareholders.