Central Bank of India Faces Rs 296 Crore Tax Demand for FY25
Synopsis
In a significant development, the Central Bank of India is contesting a tax notice of Rs 296.08 crore related to alleged shortfalls in tax payments for FY25, claiming strong grounds for appeal. The outcome could have implications for its financial operations.
Key Takeaways
Tax Demand: Rs 296.08 crore from Income Tax Department.
Assessment Year: Related to financial year 2024-25.
Appeal Process: Already underway to contest the demand.
Operational Impact: No expected impact on financial operations.
Strong Grounds: Confidence based on previous appellate rulings.
New Delhi, March 31 (NationPress) The state-owned Central Bank of India has been issued a tax demand notice amounting to Rs 296.08 crore by the Income Tax Department for an alleged discrepancy in tax payments for the financial year 2024-25, as stated in its regulatory filing on Tuesday.
The public sector bank explained that this notice pertains to the assessment year 2024-25 and is associated with claims of inadequate tax payments.
In its exchange filing, the lender revealed it received the assessment order dated March 28, 2026, under applicable sections of the Income Tax Act.
This order includes specific disallowances and adjustments made by tax officials, which contributed to the tax demand.
“The demand notice dated 28.03.2026 for Rs 296.08 Crores was uploaded on the Income Tax Portal by the Assessment Unit of the Income Tax Department, which the Bank reviewed on 30.03.2026,” it stated.
The bank has affirmed that it disagrees with the assessment and intends to contest the order.
It noted that the process of filing an appeal with the relevant authorities is already in motion and will be finalized within the allotted timelines.
The Central Bank of India expressed confidence in its stance, asserting that it possesses strong factual and legal grounds to dispute the demand.
Based on previous rulings by appellate bodies in similar cases, the bank anticipates receiving favorable relief in this situation.
“The Bank is in the process of submitting an appeal before the appropriate forum against the disallowances/additions made in the aforementioned order within the required timelines,” the bank added.
“Considering the precedents/orders from appellate authorities, the Bank believes it has sufficient factual and legal grounds to reasonably support its position in this matter, and with the expected relief, the Bank is optimistic that the entire demand will be resolved,” it further stated.
The lender also indicated that it does not foresee any financial or operational repercussions arising from this demand notice.
The bank is confident that the issue will be settled in its favor once the appeal is concluded.
“As such, no impact is anticipated on the financial, operational, or other activities of the bank,” concluded the public sector lender.
Point of View
The Central Bank of India's tax notice signifies an important regulatory action that highlights ongoing scrutiny in financial sectors. The bank's decision to appeal reflects its commitment to uphold its financial integrity amidst challenges.
NationPress
11 Aug 2026
Frequently Asked Questions
What is the tax demand amount against Central Bank of India?
The tax demand amount is Rs 296.08 crore.
For which financial year has the tax notice been issued?
The tax notice has been issued for the financial year 2024-25.
What steps is the Central Bank of India taking in response to the tax notice?
The bank is planning to file an appeal against the assessment order with the relevant authorities.
Does the bank expect any operational impact from this tax demand?
The bank does not anticipate any financial or operational impact due to this demand notice.
What grounds does the bank have to contest the demand?
The bank believes it has strong factual and legal grounds based on past appellate rulings.
