State Bank of India Faces ₹63,375 Crore Tax Demand
Synopsis
The State Bank of India has announced a substantial income tax demand of ₹63,375 crore for the assessment year 2023–24, which it plans to contest. This development reflects ongoing scrutiny and litigation surrounding the bank's financial assessments.
Key Takeaways
SBI has received a tax demand of ₹63,375 crore.
The demand relates to the assessment year 2023–24.
The bank intends to challenge the order.
Similar issues have been litigated in past financial years.
The tax demand will not affect day-to-day operations.
Mumbai, March 20 (NationPress) The State Bank of India announced on Friday that it has received a staggering income tax demand of Rs 63,375 crore pertaining to the assessment year 2023–24 and intends to contest this order.
The public sector bank informed the stock exchanges about receiving a tax demand notice from the Income Tax Department following scrutiny assessments.
Issued on March 19, 2026, the demand encompasses a total of Rs 63,375 crore, which also accounts for interest charges.
The demand was initiated due to specific disallowances made by the assessment unit on various grounds.
In its regulatory communication, the State Bank of India indicated that similar matters are currently under litigation for prior financial years, suggesting that this issue is not entirely unprecedented.
“The bank has received an order under Section 143(3) in conjunction with sections 144C(3) and 144B of the Income Tax Act from the Assessment Unit of the Income Tax Department, resulting in a demand of Rs 63,37,52,52,550 following scrutiny assessment proceedings for AY 2023-24,” stated SBI in its filing.
As the largest lender in the country, SBI expressed its intent to take all necessary measures to challenge the order, planning to file an appeal with the relevant appellate authorities within the specified timeline.
“The Assessment Unit has raised disallowances based on multiple grounds. The bank is already engaged in litigation concerning similar issues from previous years. Given that the total amount involved in this order exceeds the materiality threshold, it is being reported,” SBI added.
Furthermore, the bank reassured that the tax demand will not affect its routine operations or overall business activities.
“The Order does not impact the bank’s operations or other activities,” it concluded.
Point of View
It is essential to recognize the gravity of the situation involving the State Bank of India. The substantial tax demand reflects an increased scrutiny of financial institutions and highlights the complexities of tax regulations. This matter will undoubtedly have implications not just for SBI but also for the broader banking sector.
NationPress
10 May 2026
Frequently Asked Questions
What is the amount of the tax demand against SBI?
The tax demand against State Bank of India is ₹63,375 crore for the assessment year 2023–24.
Why has SBI received this tax demand?
The tax demand was raised due to certain disallowances made by the assessment unit during scrutiny assessments.
Will the tax demand affect SBI's operations?
No, SBI has clarified that the tax demand will not have any impact on its day-to-day operations or overall business activities.
What steps will SBI take in response to the tax demand?
SBI plans to contest the order and will file an appeal before the appropriate appellate authorities.
Is this tax demand unique to the current year?
No, similar issues are already under litigation for previous financial years.
