Yes Bank received a tax demand notice worth ₹2,209 crore from the Income Tax Department for the 2019-20 assessment year. The private sector bank reported the notice through an exchange filing, informing us that it believes the demand is without merit and will challenge it in court.
Background of the Tax Demand
The demand of tax pertains to the order for reassessment made by the National Faceless Assessment Unit on 28th March 2025 under Section 144 of the Income Tax Act, 1961. The reassessment procedure was commenced in April 2023, even when the initial assessment order dated 30th September 2021 had already granted a refund based on the filed income tax return.
Yes Bank insisted that the order of reassessment did not bring any new additions or disallowances but retained the income that had been originally assessed. Therefore, according to the bank, there should be no tax liability under the reassessment.
Yes Bank’s Stand
The bank has categorically declared that it has sufficient grounds to support its stand and is going to file an appeal against the order of reassessment under provisions of the law. Yes Bank also clarified that this tax demand does not have a detrimental effect on its financial health, business, or other activities.
Stock Performance and Market Impact
Yes Bank’s stock price on BSE settled at ₹16.89 on March 28, down by roughly 25% in the last six months. The market cap of the bank is now around ₹53,000 crore. The value of the share has fallen by nearly 14% in 2025 till date.
Next Steps
The bank intends to proceed with the necessary legal actions to contest the tax demand. It maintains that the demand notice appears to be baseless and lacks adequate justification, as the reassessment did not alter the originally assessed income.
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