Novartis India Limited has disclosed receiving a significant income tax demand notice totaling ₹10,28,40,780 for Assessment Year 2020-21. The pharmaceutical company made this disclosure under Regulation 30 of SEBI Listing Regulations on March 27, 2026.

Tax Demand Details

The demand notice was issued under Section 156 of the Income-tax Act, 1961, by the Assistant Commissioner of Income-tax, TDS Circle – 2(3). The company received the notice on March 26, 2026, via email, followed by the TDS order on March 27, 2026.

Nature of Allegations

The tax authorities have alleged non-compliance with tax deducted at source (TDS) provisions related to:

• Alleged margin to stockist
• Interest on Micro, Small and Medium Enterprises (MSMEs)

The TDS order also mentions that penalty proceedings under section 271C of the Income-tax Act are being initiated separately.

Company's Response Strategy

Novartis India has outlined its planned course of action in response to the demand:

• Filing an appeal with the appropriate appellate authority
• Applying for a stay of demand
• Continuing to update stock exchanges on further developments

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 read with Schedule III Para B sub-para 8 of the SEBI Listing Regulations, 2015, and Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Company Secretary and Compliance Officer Chandni Maru signed the disclosure document.

Assessment Period

The demand pertains to Assessment Year 2020-21, covering the financial year ended March 31, 2020. The proceedings were concluded under sections 201(1) and 201(1A) of the Income-tax Act, which deal with TDS compliance and interest on delayed deposits respectively.

Novartis India Limited's Board of Directors convened on March 27, 2026, to address significant leadership transitions and governance matters. The meeting, which commenced at 09:30 A.M. (IST) and concluded at 10:00 A.M. (IST), resulted in key decisions regarding director appointments and tenure completions pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Approves New Independent Director Appointment

The board approved the appointment of Ms. Gowree Gokhale as an Additional Director, designated as Non-Executive and Independent Director, based on the Nomination and Remuneration Committee's recommendation. The appointment details are structured as follows:

Ms. Gowree Gokhale brings extensive legal expertise to the board, with over 30 years of diverse experience spanning Intellectual Property, Data Protection, Consumer Protection, Mergers & Acquisitions, Joint Ventures, and Competition Law. She is a distinguished Solicitor of the Bombay Incorporated Law Society, holding an L.L.M from Mumbai University with specialization in Intellectual Property, Labour, Tax, and Consumer Protection laws, along with a Diploma in Taxation Laws from the University of Pune.

Professional Background and Expertise

Ms. Gokhale's professional journey includes a significant 22-year association with Nishith Desai Associates, where she co-led the Pharma and Medical Devices practice areas. Currently, she operates her own independent chamber practice. Her expertise spans multiple industries including Pharma, Healthcare, Telecom, E-Commerce, AI, Fintech, Gaming, Media, and Entertainment.

Her notable contributions include:

• Serving on the Consumer Affairs Ministry's task force addressing digital dark patterns, greenwashing, and surrogate advertising
• Acting as Special Advisor to FICCI's Privacy and Data Security Committee
• Working as Legal & Policy Expert (Consultant) with the Advertising Standards Council of India
• Publishing research papers and articles extensively
• Serving as visiting faculty at leading law colleges and institutes

Leadership Transition: Ms. Sandra Martyres Completes Tenure

Simultaneously, the board acknowledged the completion of Ms. Sandra Martyres' second and final term as Independent Director. Her tenure details are outlined below:

The Board of Directors placed on record their deep appreciation and gratitude for the significant contributions made by Ms. Sandra Martyres during her tenure as Independent Director.

Postal Ballot Approval

The board approved a draft notice for Postal Ballot to seek shareholder approval for Ms. Gowree Gokhale's appointment as Non-Executive Independent Director for the specified 5-year term from April 01, 2026, to March 31, 2031.

Regulatory Compliance

The announcements were made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and relevant SEBI circulars. The company confirmed that Ms. Gowree Gokhale is not debarred from holding the office of Director by virtue of any SEBI order or other authority, and that she is not related to any existing Director of the Company.