Bank Of India Faces ₹564 Crore Penalty From Income Tax Department; Yes Bank Also Hit With ₹113 Crore Tax Demand

The Income Tax department has imposed penalties of Rs 564 crore on public sector Bank of India while the troubled Yes Bank gets  ₹113 crore tax demand. 

The Income Tax Department Assessment Unit imposed penalty pertaining to AY2018-19 of Rs 564.44 crore on various disallowances made by Bank of India  

The public sector lender Bank said it was in the process of filing an appeal before the Commissioner of Income Tax, National Faceless Appeal Centre (NFAC) against the order.

“The bank expects the entire demand to subside. As such, there is no impact on financial, operations or other activities of the bank," Bank of India said in regulatory filings and added “Looking to the precedence/orders of appellate authorities, the bank believes that it has adequate factual and legal grounds to reasonably substantiate its position in the matter.”  

While the taxman imposed additional demand for tax liability for Rs 112.81 crore on Yes Bank. The tax demand by the National Faceless Assessment Unit of Income Tax passed the re-assessment order for assessment year 2018-19 on various tax disallowances.