Yes Bank Receives Demand Notice of Rs 2,209 Crore from Income Tax Department for Assessment Year 2019-20

Yes Bank has reported receiving a demand notice for Rs 2,209 crore related to the 2019-20 assessment year. The income-tax department reopened this assessment in April 2023, according to a regulatory filing by the bank. Despite no new disallowances or additions being made, the demand was issued.

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The National Faceless Assessment Unit of the income-tax department passed the reassessment order on March 28. The original assessment order's total income remained unchanged, as no grounds for reassessment were upheld. Consequently, Yes Bank argues that no demand should have been raised.

Income-Tax Demand Details

The demand notice includes an interest component of Rs 243.02 crore, bringing the total to Rs 2,209.17 crore. Yes Bank claims this demand lacks a valid basis. The bank asserts it has sufficient grounds to support its stance and anticipates no significant negative impact on its financial or operational activities.

Yes Bank plans to challenge the reassessment order through appeal and rectification proceedings under applicable laws. The bank is confident in its position and intends to pursue all necessary legal avenues to address the issue.

The bank's statement highlights that despite the reassessment proceedings being initiated, the original assessed income remains unchanged. This suggests that the grounds for reopening the assessment were not substantiated, leading to questions about the legitimacy of the demand notice.

In light of these developments, Yes Bank remains committed to resolving this matter through legal processes. The bank's management is focused on ensuring that this issue does not adversely affect its operations or financial health.