Now Reading: IIFL Home Finance Faces Rs 963 Crore Tax Demand
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IIFL Home Finance Faces Rs 963 Crore Tax Demand
IIFL Home Finance has received a Rs 963.39 crore income tax demand after a search-related block assessment covering April 1, 2018, to February 3, 2025. The order was issued on August 24,…
IIFL Home Finance has received a Rs 963.39 crore income tax demand after a search-related block assessment covering April 1, 2018, to February 3, 2025. The order was issued on August 24, 2026, by the Assistant Commissioner of Income Tax, Central Circle 4(4), Mumbai, under Section 158BC(1)(c) of the Income Tax Act.
The main additions involve about Rs 490 crore in overriding commission income, Rs 392 crore in interest strip assets, Rs 305 crore linked to a Section 36(1)(viii) deduction and Rs 53 crore in ESOP expenses. The company says some income was already taxed and disputes the treatment of reserves and ESOP costs. It plans appellate and rectification proceedings and does not expect a material operational or financial impact.
Separately, recovery of IIFL Finance’s earlier Rs 475.56 crore demand has been stayed until December 31, 2026, or the Commissioner of Income Tax (Appeals) decision, subject to payment of Rs 23.78 crore. It has paid Rs 5 crore.
Indian Opinion Analysis
Both sources use straight exchange-filing details, with no clear difference in political or commercial framing. The demand is large, but the listed additions exceed it because they are components of the assessment rather than separate payable amounts. The company’s position is presented alongside the tax authority’s order, while the eventual liability remains unresolved. The appellate and rectification process will determine whether the disputed additions stand, with the separate recovery stay running until December 31, 2026, unless the appeals commissioner decides earlier.
Coverage: 2 sources, 2 neutral
Sources (2): ndtvprofit.com (neutral report), legal.economictimes.indiatimes.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
