Yes Bank Faces ₹2,209 Crore Tax Demand After Reassessment—Bank Plans to Appeal

New Delhi (The Uttam Hindu): The Income Tax Department has issued a tax demand of Rs 2,209 crore, including interest of Rs 243.02 crore, to Yes Bank for the assessment year 2019-20, according to the bank's regulatory filing. The notice was issued following a reassessment order passed on March 28 by the National Faceless Assessment Unit, though the reassessment did not introduce any new rejections. In the filing, the bank clarified that the grounds which led to the reassessment had been removed, and the total income as determined in the original assessment order remained unchanged.

Despite this, the calculation sheet and demand notice issued under Section 156 of the Income Tax Act have raised a tax demand of Rs 2,209.17 crore, which the bank claims appears to be without proper basis. The assessment year was reopened by the Income Tax Department in April 2023.

Yes Bank maintains that it has solid grounds to challenge the demand and does not expect any significant impact on its financial, operational, or other activities. The bank plans to file an appeal and take legal action to address the reassessment order.