Yes Bank Resolves ₹2,209.17 Crore Income-Tax Demand
Yes Bank announced on April 25, 2025, that it has received a rectification order from the Jurisdictional Assessing Officer (JAO), effectively eliminating a substantial income-tax demand totaling ₹2,209.17 crore.
Background of the Tax Demand
The demand was associated with a reassessment order pertaining to the Assessment Year (AY) 2019-20 under Section 147 of the Income-tax Act, 1961. Although the reassessed income remained consistent with the figures reported in the Bank’s original Return of Income and earlier assessment order, there was an incorrect reflection in the computation sheet. This discrepancy indicated a tax liability of ₹2,209.17 crore (inclusive of interest), which the Bank contended had no substantial basis.
Steps Taken by Yes Bank
In light of the erroneous demand, Yes Bank proceeded to initiate both appeal and rectification processes under the relevant provisions of the Income-tax Act. The Bank actively engaged with the tax authorities to amend the erroneous demand.
Outcome of Rectification Application
Following the Bank’s rectification application, the JAO issued an order under Section 154 on April 24, 2025, which resolved the tax demand in question. Yes Bank confirmed the receipt of this rectification order, heralding the conclusion of the matter.
Conclusion
The resolution of this substantial demand marks a significant milestone for Yes Bank, easing its tax-related concerns linked to the mentioned assessment year. The Bank’s proactive steps in addressing the issue demonstrate its commitment to regulatory compliance.
