Karur Vysya Bank has received a notice from the Income Tax Department’s assessment unit regarding a tax demand of ₹160.33 crore for the assessment year 2023-24, which pertains to the financial year 2022-23. The demand is due to certain additions and disallowances made by the tax authorities. The bank has disclosed that it is currently preparing to file an appeal with the first appellate authority to challenge the disallowances.
The bank is confident that it has sufficient legal grounds to defend the demand and is hoping that the appeal will be successful, which would result in the demand being set aside. Despite the notice, the bank has assured that the demand will not have any impact on its financial, operational, or other activities.
The bank’s statement suggests that it is taking a proactive approach to address the issue by preparing an appeal and is optimistic about the outcome. This approach demonstrates the bank’s commitment to transparency and its ability to manage challenges in a responsible manner. The notice from the tax authorities is a common occurrence for any business, and the fact that the bank is taking steps to address it ensures that it can continue to operate smoothly and serve its customers without disruption.
The news about the tax demand has been shared publicly by the bank, providing investors and stakeholders with transparency and disclosure regarding the issue. This shows that the bank is committed to keeping its stakeholders informed about material developments and is willing to address any concerns they may have. Overall, the news does not suggest any significant concerns for the bank’s financial performance or stability, and it is likely to be business as usual for the bank.