Bank of Baroda Receives INR 806 Crore Tax Demand

“Pursuant to Para A(20) of Part A of Schedule III of LODR, this is to inform that the Bank has received a demand notice on 30.03.2026 from the Faceless Assessment Unit, Income Tax Department, pertaining to AY 2020-21,” the Bank disclosed in an exchange filing.

ETLegalWorld

Published On Mar 31, 2026 at 04:44 PM IST

Bank of Baroda has received a demand notice of INR 806.18 crores from the Faceless Assessment Unit (FAU) of the Income Tax Department for AY 2020-21, with the demand order received on March 30, 2026.

“Pursuant to Para A(20) of Part A of Schedule III of LODR, this is to inform that the Bank has received a demand notice on 30.03.2026 from the Faceless Assessment Unit, Income Tax Department, pertaining to AY 2020-21,” the Bank disclosed in an exchange filing.

The demand was issued under Section 156 of the Income Tax Act, 1961, and relates to three contested tax positions: taxability of income from the bank's foreign branches, treatment of broken period interest paid on purchase of securities, and classification of bad debts written off under Section 36(1)(vii).

Advt The Bank said it will file an appeal before the Commissioner of Income Tax (Appeals) at the National Faceless Appeal Centre (NFAC) or pursue a Writ Petition before the High Court, as may be deemed appropriate, within prescribed timelines.

Bank of Baroda expressed confidence in its legal position, stating it has "adequate factual and legal grounds to reasonably substantiate its position" and expects "the entire demand to subside" based on precedent from appellate authorities.

The bank said that the Income Tax demand has not impacted its financial operations or other activities. “As such, there is no impact on financial operations or other activities of the Bank,” the Bank said.

The disclosure was made pursuant to SEBI's Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.