MUMBAI — Tata Capital has announced it will contest a ₹413.18 crore tax reassessment order issued by Mumbai authorities for the 2017-18 financial year.

The demand, which includes ₹202.72 crore in interest, pertains to Tata Capital Financial Services Ltd (TCFSL), a subsidiary that merged into Tata Capital in April 2023. The company maintains that the demand stems from a "computation error" where tax credits were incorrectly attributed to the parent company instead of the merged entity.

Key Details:

• The Dispute: Tata Capital argues the assessing officer failed to correctly account for taxes already paid by TCFSL, leading to a "short credit" and subsequent interest penalties.
• Legal Action: The firm is filing rectification applications and appeals, citing strong judicial precedents.
• Financial Impact: Despite the size of the demand, Tata Capital stated it expects a favorable outcome and does not anticipate any material impact on its operations or financial health.