Indian Overseas Bank (IOB) has received a Demand Notice under Section 156 of the Income Tax Act, 1961, from the office of the Deputy Commissioner of Income-tax, Non-Corporate Circle-8, Chennai. The notice pertains to Assessment Year (AY) 2015-16 and demands an amount of ₹766,02,83,968. This demand is a consequence of disallowances and additions made with regard to claims in the bank's income tax returns, giving effect to an order from the ITAT. The bank is in the process of challenging this order before the appropriate forum within the prescribed timelines. IOB stated that based on precedents and appellate authorities' orders, it believes it has sufficient grounds to substantiate its position. The bank expects the entire demand to subside and therefore anticipates no impact on its financial, operations, or other activities. The notice also indicates that a penalty under Section 271(1)(c) of the Income Tax Act may be imposed separately. The communication was received on March 2, 2026, and the disclosure was made on March 3, 2026.
