Central Bank of India Faces Rs 296-Crore Tax Demand

The Central Bank of India has received a Rs 296.08-crore notice from the Income Tax Department for tax underpayment in FY25. The bank plans to challenge the order, expecting favorable outcomes and no impact on its financial operations.

The Central Bank of India has announced that it received a significant Rs 296.08-crore demand notice from the Income Tax Department on Tuesday. This notice pertains to a shortfall in tax payment for the fiscal year 2024-25.

The demand was issued under the Income Tax Act regulations, specifically Section 143(3) in conjunction with Section 144B. It calls for the bank to rectify an alleged underpayment, according to an assessment order dated March 28, 2026.

In response, the bank is set to contest the demand, citing strong legal grounds. The institution anticipates that previous appellate orders will provide the relief needed, and as a result, expects no adverse effects on its financial standing or operations.

(With inputs from agencies.)