Yes Bank has received an additional income-tax demand of ₹244.20 crore, linked to a reassessment and rectification process for the assessment year 2016-17.
The demand, which includes significantly revised interest calculations under Sections 234A and 234B of the Income Tax Act, was issued by the Jurisdictional Assessing Officer (JAO), Mumbai, on April 15.
In a regulatory filing, the bank stated that the demand arose after the JAO corrected an earlier mistake in the reassessment order, which had calculated tax based on reported income rather than the assessed income. However, the bank flagged that the updated demand appears to be “unsubstantiated” and not supported by clear reasoning.
Yes Bank said it will immediately file a rectification application and may also appeal the order. “The bank believes that it has adequate factual and legal grounds to reasonably substantiate its position and does not expect any material adverse impact on its financial, operational or other activities due to the said order,” it noted.
The latest demand stems from a long-drawn tax proceeding that began with an initial assessment order issued to Yes Bank in December 2018 for AY2016–17, which had included certain additions and disallowances. This was followed by a reassessment order in March 2022.
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The current rectification order—issued on April 15, 2025—is a consequence of that reassessment process, the bank clarified.
At 01:50 PM, the shares of Yes bank were seen trading 2% higher at ₹17.18 on BSE.
This development comes just weeks after a separate demand notice of ₹2,209 crore was issued to the bank for the assessment year 2019–20.
In that case, too, the bank said the reassessment concluded with no additions or disallowances, yet the tax department had inexplicably raised a fresh demand—something the bank had also said it would challenge.
Both cases are expected to play out through the statutory appellate process in the coming months.
