Tata Capital Limited has received a significant Income Tax reassessment order demanding ₹413.18 crores for Financial Year 2017-18, according to a regulatory filing made on March 21, 2026. The order was issued by the Deputy Commissioner of Income Tax, Circle - 2(3)(1), Mumbai, under Section 143(3) read with Section 147 of the Income Tax Act, 1961.

Order Details and Timeline

The reassessment order was issued on the Income Tax website on March 20, 2026, and downloaded by the company on March 21, 2026. The order pertains to Tata Capital Financial Services Limited (TCFSL), which was subsequently merged with Tata Capital Limited with an appointed date of April 1, 2023.

Nature of Alleged Violations

The primary issue centers around alleged short credit of taxes paid by the erstwhile TCFSL. According to the company's analysis, the assessing officer erroneously credited taxes paid by Tata Capital Limited (₹16.36 crores) instead of allowing credit for taxes actually paid by TCFSL, which aggregated to ₹225.89 crores as claimed in the income tax return.

The company highlighted that ₹224 crores in tax credit was duly allowed in the original assessment order under Section 143(3) dated September 29, 2021. This computational error resulted in a short credit of ₹209.52 crores, upon which interest of ₹202.72 crores was subsequently levied.

Company's Response and Expected Impact

Tata Capital Limited has stated it does not envisage any material financial implication at this stage, citing apparent errors in the computation sheet. The company plans to take the following steps:

• File rectification application for computational errors
• Appeal the reassessment order through appropriate channels
• Address additional disallowances with tax impact of ₹26.31 crores

Additional Disallowances

Beyond the primary tax credit issue, the order includes certain disallowances for FY 2017-18 with a tax impact of ₹26.31 crores. The company has already filed or is in the process of filing appeals with the Commissioner of Income Tax (Appeals) for these matters. Management expressed confidence in achieving favorable outcomes based on strong legal grounds and judicial precedents.

Management Outlook

The company's management believes the entire demand is not maintainable due to the computational errors identified. They expect a favorable outcome and anticipate no impact on the company's financials, operations, or other activities. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Tata Capital Limited has announced a scheduled virtual meeting with institutional investors for March 18, 2026, as disclosed in a regulatory filing under SEBI compliance requirements.

Meeting Details

The company has provided specific details about the upcoming investor engagement:

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time. The notification was filed on March 13, 2026, and digitally signed by Sarita Kamath, Chief Legal and Compliance Officer & Company Secretary.

Information Sharing Guidelines

Tata Capital Limited has explicitly stated that no unpublished price sensitive information will be shared or discussed during the meeting with investors. This commitment aligns with regulatory requirements and ensures compliance with insider trading regulations.

Schedule Flexibility

The company has noted that the meeting schedule may undergo changes due to exigencies on the part of attendees or the company itself. This provision allows for necessary adjustments while maintaining transparency with stakeholders about potential modifications to the planned engagement.