Yes Bank received a ₹2,209 crore demand notice from the Income Tax Department for the assessment year 2019-20 which has raised concerns about potential volatility in its stock. The National Faceless Assessment Unit issued a reassessment order on March 28 which did not include any additional rejections or additions thus rendering the reassessment basis invalid. The bank declared that a demand notice containing ₹243.02 crore worth of interest was issued to the company under section 156 of the Income Tax Act.
The bank stated that its initial tax assessment did not change so the tax demand seemed without merit. The bank remains confident about its legal standing and does not expect any substantial impact on its financial or operational stability. Yes Bank has announced its intention to fight the reassessment order through an appeal and rectification proceedings.
Yes Bank shares currently trade at ₹16.85 while showing a 25% decrease from the previous six months. Market analysts predict this tax notice will create extra pressure on the stock which might lead to additional losses. The bank’s legal response to the tax demand will receive close attention from investors who follow its developments.
