Yes Bank has been served a tax demand notice of Rs 2,209 crore for the 2019-20 assessment year by the Income Tax Department. The National Faceless Assessment Unit conducted the reassessment but made no additional disallowances. Despite this, the demand was raised, including interest charges. Yes Bank intends to challenge the order through an appeal and rectification process.
Yes Bank Disputes Rs 2,209 Crore Tax Demand Following Reassessment
New Delhi: Yes Bank announced on Saturday that it has received a tax demand notice amounting to Rs 2,209 crore from the Income Tax Department for the financial year 2019-20. This assessment year had been reopened in April 2023, as per the bank’s regulatory filing. 
The reassessment, conducted by the National Faceless Assessment Unit, concluded on March 28. According to Yes Bank, no fresh disallowances or additions were made, and the original grounds for reopening the assessment were ultimately dropped. Consequently, the bank argues that there should have been no new tax liability imposed.
Despite this, the bank stated that the computation sheet and demand notice under Section 156 of the Income Tax Act have levied a total tax demand of Rs 2,209.17 crore, including Rs 243.02 crore in interest. Yes Bank has expressed concerns that the demand appears to lack a clear basis.
Given these circumstances, the bank asserts that it has strong grounds to challenge the tax demand and does not foresee any significant financial or operational impact arising from this order. It further confirmed that it will initiate an appeal and rectification proceedings under applicable tax laws.
Yes Bank remains firm in its stance, maintaining that the reassessment order does not substantiate the raised tax demand, and will pursue all legal avenues to resolve the issue.
