Swiggy Faces ₹158.25 Crore Income Tax Demand

1 Apr 2025 , 09:47 PM

Swiggy Ltd, one of the largest online food delivery services, has received an income tax demand of ₹158.25 crore for the assessment year 2021-22. The order in question was passed by the Deputy Commissioner of Income-tax, Central Circle – 1(1), Bangalore. The demand is linked to some discrepancies with regard to cancellation charges that were paid to merchants and interest income on tax refunds.

Swiggy has strongly disagreed with the assessment and has decided to challenge the order before the appropriate authority. The company believes it has a strong case and is taking necessary legal steps to protect its interests.

Swiggy has said that the tax demand is unlikely to materially impact its financial performance or operations. Other companies that have in the past received or are facing income tax scrutiny include Dabur India Ltd least received an income tax re-assessment order of ₹110.33 crore for the financial year 2017-18.

Dabur has claimed that some part of the tax demand is due to an innocent error, in which income already assessed for AY 2018-19 has been taken into account again. The company had also claimed that part of the demand for tax, which is ₹36.77 crore, was raised without proper discussion.