Yes Bank confirmed that it has received a demand notice from Income Tax Department for the assessment year 2019-2020. The Income tax department reopened this assessment in April 2023, and on March 28, a reassessment order was passed by the National Faceless Assessment Unit.
Yes Bank claims that the demand notice issued under sec 156 is baseless. Yes Bank said that in the new order of reassessment, no new disallowances or additions are made, even though total income earned by the bank remained same in the original assessment. Still, the bank issued a notice of Rs 2209 crore, including an interest of Rs 243 crore.
Yes Bank feels that since there are no changes in the income, the IT department should not make any extra demands. In simple terms, the bank wants to make clear that bank is being taxed on the same income twice, which should not have happened.
Yes Bank plans to file an appeal against the tax demanded. The Bank believes that it has strong reasons to challenge this demand, and it will not affect their financial health, business operations, or any other activities.
A Few Financial Term Used Are Explained Here:
Assessment Year: This is the year in which income is evaluated and taxed.
For example, if an individual earn an income in the year 2023-24, then the assessment year will be 2024-25.
National Faceless Assessment Unit It’s a central office that manages and carries out the process of the entire faceless assessment in India. This is a way to eliminate the human interaction between the taxpayer and the Income Tax Department.