25 Aug , 2026 By : Debdeep Gupta
Shares of IIFL Finance were trading lower in morning trade on Tuesday after the company and its core subsidiary, IIFL Home Finance, disclosed income tax assessment orders, with the subsidiary facing a Rs 963.39 crore tax demand.
The stock was trading at Rs 671.20 on the NSE, down Rs 25.20 or 3.62 percent as of 10:14 am.
The Rs 963.39 crore demand against IIFL Home Finance, including cess and surcharge, stems from a block assessment spanning April 2018 to February 2025. The principal additions and disallowances relate to overriding commission income of around Rs 490 crore, interest strip assets of around Rs 392 crore, Section 36(1)(viii) deductions of around Rs 305 crore and ESOP expenses of around Rs 53 crore.
IIFL Home Finance has contested the claims, arguing that income relating to overriding commission and interest strip assets had already been subjected to taxation, but the tax authorities did not appropriately consider the tax credit during the assessment. The company is pursuing appellate and rectification remedies.
Meanwhile, IIFL Finance has secured a stay on recovery of a separate Rs 475.56 crore tax demand previously disclosed in May 2026. The stay is subject to payment of Rs 23.78 crore, equivalent to 5% of the disputed demand, in instalments by December 15, 2026.
IIFL Finance has already paid the first instalment of Rs 5 crore on August 13, 2026. The stay will remain in effect until December 31, 2026, or disposal of the company's appeal before the Commissioner of Income Tax (Appeals), whichever is earlier.
Both entities maintain that they have strong cases on merits and do not expect the matters to have a material impact on their financial position or operations.
0 Comment