I-T notice to Yes Bank: The bank has received a demand notice for Rs 2,209 crore from the Income Tax Department for the assessment year 2019–20, which could cause volatility for investors in Yes Bank shares when the stock market starts on Tuesday. The assessment for this time was reopened by the Income Tax Department in April 2023, following the bank’s regulatory filing.On March 28, the National Faceless Assessment Unit issued a reassessment order that essentially eliminated the grounds for evaluation without issuing any new additions or rejections. Over the last six months, Yes Bank’s stock has dropped by 25%, and it is currently trading at Rs 16.85. Experts in the market predict that this tax notice may have additional effects on the stock price, possibly resulting in a further drop.
No tax is due on bank
According to the bank, no demand should have been made against the bank because the total income that was determined in the initial assessment order issued under section 144 of the Income Tax Act has not altered in the reassessment order. Nevertheless, it stated that the computation sheet and the notice of demand filed under section 156 of the Act appear to be “without any basis” because they raise an income tax claim of Rs 2,209.17 crore, including interest of Rs 243.02 crore.
As a result, the bank feels it has sufficient justification to support its stance in this case, and it does not anticipate that the aforementioned order will have a materially negative effect on its operations, finances, or other activities, the bank stated. According to the relevant legislation, the bank would contest the aforementioned reassessment order and initiate rectification procedures, it further stated.
