CL Educate Receives Income Tax Demand of Rs 4.85 Crores for FY 2019-20 TDS Issues

CL Educate Limited has received a significant Income Tax demand of Rs 4.85 crores from tax authorities for alleged Tax Deducted at Source (TDS) defaults during Financial Year 2019-20. The company disclosed this development through a regulatory filing under SEBI's disclosure requirements.

Income Tax Order Details

The Deputy Commissioner of Income Tax, Circle-75(1), Delhi issued the order dated March 30, 2026, under Section 201(1)/201(1A) of the Income Tax Act, 1961. The order pertains to Financial Year 2019-20 (Assessment Year 2020-21) and raises concerns about alleged TDS compliance issues.

Component	Amount (Rs)
Demand under Section 201(1)	2,63,11,418
Interest under Section 201(1A)	2,22,20,834
Total Demand	4,85,32,252

Alleged Violations

The tax authorities have identified three main areas of alleged TDS defaults:

Provision-related TDS: Default in deduction of TDS on provisions for expenses created as of March 31, 2020, where actual bills were received and TDS was deducted/deposited in the subsequent FY 2020-21
Salary payments: Issues related to TDS deduction on salary payments to certain employees under Section 192 of the Income Tax Act, 1961
Incorrect TDS sections: Alleged short deduction of TDS on certain payments where the company applied Section 194J instead of Section 192

Company's Response and Impact

CL Educate has expressed confidence in its position, stating it believes there is a strong case on merits. The company plans to file an appeal before the appropriate appellate authority to contest the order.

Parameter	Details
Appeal Status	To be filed before appellate authority
Business Impact	No material adverse impact expected
Financial Treatment	Contingent liability in financial statements
Order Authority	Deputy Commissioner of Income Tax, Circle-75(1), Delhi

The matter will be disclosed as a contingent liability in the company's financial statements for the relevant period. Despite the substantial demand amount, CL Educate does not anticipate any material adverse impact on its business operations as a result of this order.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.27%	-2.56%	+21.77%	-48.46%	-43.18%	+99.92%

CL Educate Limited has issued a regulatory disclosure confirming that Dr. Abhay Jere has not been debarred from holding directorial positions by any regulatory authority, following his recent appointment as Managing Director and Chief Executive Officer of the company's subsidiary.

Appointment Details

The disclosure relates to Dr. Abhay Jere's appointment as Additional Director on the Board of Directors of DEXIT Global Limited, formerly known as NSEIT Limited, which is a material unlisted subsidiary of CL Educate Limited. His appointment was announced on February 28, 2026.

Parameter:	Details
Appointee:	Dr. Abhay Jere
Position:	Managing Director and Chief Executive Officer
Director Category:	Non-Independent, Executive Director
Company:	DEXIT Global Limited (formerly NSEIT Limited)
Appointment Date:	February 28, 2026

Regulatory Compliance

The company has confirmed that Dr. Jere has not been debarred from holding the office of Director by virtue of any order passed by SEBI or any other regulatory authority. This confirmation is crucial for ensuring compliance with corporate governance norms and regulatory requirements.

The disclosure was made in accordance with specific regulatory circulars:

BSE Circular No. LIST/COMP/14/2018-19
NSE Circular No. NSE/CML/2018/24 dated June 20, 2018

Corporate Structure

DEXIT Global Limited, where Dr. Jere has been appointed, is classified as a material unlisted subsidiary of CL Educate Limited. The appointment of Dr. Jere as both Managing Director and Chief Executive Officer positions him as a Key Managerial Personnel within the subsidiary's organizational structure.

Documentation and Authorization

The disclosure was signed by Rachna Sharma, Company Secretary and Compliance Officer of CL Educate Limited, and was digitally authenticated on March 11, 2026. The communication was formally addressed to both BSE Limited and National Stock Exchange of India Limited as part of the company's ongoing compliance obligations.