Hero MotoCorp Hits Speed Bump with Additional Tax Demand

Hero MotoCorp Ltd has received an additional tax demand of Rs 26.40 crore from India's Income Tax Department for the 2020-21 assessment year. The company plans to contest the demand, which they believe is unlikely to materially affect its financials or operations.

Leading two-wheeler manufacturer Hero MotoCorp Ltd has been hit with an additional tax demand of Rs 26.40 crore by the Income Tax Department for the assessment year 2020-21. The company's announcement came via a regulatory filing on Wednesday.

The Deputy Commissioner of Income Tax, Central Circle 27, New Delhi, issued the demand in an order dated December 31, 2024. The firm noted that its income tax return for that year, filed on December 31, 2020, had undergone a detailed examination in accordance with the Income Tax Act of 1961.

Hero MotoCorp stated that the tax officer increased their reported income by approximately Rs 96.5 crore, leading to the additional tax demand. The company is currently reviewing the order and intends to file an appeal and rectification application, asserting management's view that the demand is unsustainable and should not impact its financial health.

(With inputs from agencies.)