IIFL Finance and its material subsidiary IIFL Home Finance Limited disclosed receipt of income tax assessment orders on August 24, 2026. The orders relate to a block assessment period spanning April 1, 2018, to February 3, 2025.

The Assistant Commissioner of Income Tax, Central Circle – 4(4), Mumbai, raised a tax demand of ₹963.39 crore (including surcharge and cess) against IIFL Home Finance Limited. This demand arose from block assessment proceedings linked to search and seizure actions under section 158BC(1)(c) of the Income Tax Act, 1961.

Assessment Details

The principal additions and disallowances in the order against IIFL Home Finance Limited include:

• Overriding commission (ORC) income: approximately ₹490 crore
• Deduction claimed under section 36(1)(viii): approximately ₹305 crore
• Interest strip assets: approximately ₹392 crore
• ESOP expenses: approximately ₹53 crore

IIFL Home Finance Limited stated it has substantial factual and legal grounds to contest these additions. The company noted that income relating to ORC and interest strip assets had already been offered to tax, though appropriate credit was not fully considered. It also cited interpretation issues regarding "general reserves" under section 36(1)(viii) and disputed the treatment of ESOP expenses.

Stay Order and Payments

For IIFL Finance Limited, the IT Authority granted a stay on the recovery of an outstanding demand of ₹475.56 crore, previously disclosed on May 12, 2026. The stay is valid until December 31, 2026, or until the disposal of the company's appeal before the Commissioner of Income Tax (Appeals), whichever occurs earlier.

The stay is conditional upon payment of ₹23.78 crore, equivalent to 5% of the disputed demand, in installments by December 15, 2026. IIFL Finance Limited paid the first installment of ₹5 crore on August 13, 2026.

Both entities believe they have strong cases on merit and are pursuing available appellate and rectification remedies. Neither company expects a material impact on its financial position or operations from these orders.

IIFL Finance witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 8,11,197 shares changing hands at ₹617.50 per share, aggregating to a total deal value of ₹50.09 crores. Block trades of this magnitude are typically executed between institutional participants outside the regular market order book, reflecting significant interest in the stock.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

The transaction underscores active institutional engagement in IIFL Finance's shares on the NSE, with the block trade executed at ₹617.50 per share for a combined consideration of ₹50.09 crores.