Yes Bank has received a ₹2,209 crore demand notice from the Income Tax Department for the assessment year 2019-20. The reassessment order, issued by the National Faceless Assessment Unit on March 28, 2025, did not include any new disallowances or additions, leaving the grounds for reassessment unsubstantiated. Despite this, the demand notice includes ₹243.02 crore in interest, raising concerns about its validity.
In its regulatory filing, Yes Bank stated that the total income assessed in the original order remains unchanged, and no demand should have been raised. The bank described the notice as “without any basis” and assured stakeholders that it has adequate grounds to substantiate its position. Yes Bank plans to challenge the reassessment order through appeal and rectification proceedings under applicable laws.
The bank emphasized that the notice is unlikely to have any material adverse impact on its financial or operational activities. However, market experts warn that the development could lead to volatility in Yes Bank’s stock price, which has already declined by 25% over the past six months.
This situation highlights the complexities of tax reassessment processes and the importance of transparency in regulatory compliance. Stay tuned for updates as Yes Bank pursues legal avenues to address the issue.
