Yes Bank receives income-tax demand notice of Rs2,209 crore

Yes Bank has received an income tax demand notice of Rs 2,209 crore for the assessment year 2019-20. The bank gave this information in the exchange filing.

The Bank said that this demand is wrong. It added that it received an order on 30 September 2021 under section 144 of the Income Tax Act 1961 for the assessment year 2019-20. In this, the bank was provided a refund in accordance with the refund claimed in the previously filed income tax return. The relevant assessment year was re-opened by the Income Tax Department in April 2023.

The National Faceless Assessment Unit of the department passed the re-assessment order on 28 March 2025. No additional dis-allowances / additions have been made in this. That is, the grounds on which re-assessment proceedings were initiated have been abandoned.

Thus, the total amount of income assessed in the original assessment order passed under section 144 of the Act remained the same in the re-assessment order. Consequently, no income tax demand should have been raised against the bank.

This demand has been made without any basis

Yes Bank further said, 'Despite this, an income tax demand of Rs 2,209.17 crore including interest has been made in the computation sheet and demand notice issued under section 156 of the Act. This prima facie appears to be a demand made without any basis.'

The order will have no impact on the finances

The bank said that it has sufficient grounds to properly explain its position in this matter. Yes Bank will appeal and take action against this re-assessment order under applicable law. The bank has also said that this order is unlikely to have any impact on its finances, operations and other activities.

Yes Bank's stock fell 31% in a year

Yes Bank's stock closed at Rs 16.85 on Friday with a decline of 2.38%. The market cap of the bank is Rs 53.20 thousand crore. The share price has fallen by 25% in the last 6 months and about 15% so far in the year 2025. The company's stock has fallen by 31% in one year. Public shareholders hold 100% stake in the bank.