Demand notice for income tax of Rs 284.58 crore is sent to Zydus Lifesciences arm

27 Dec 2023 , 10:02 AM

Zydus Lifesciences announced on Tuesday that an income tax notice demanding Rs 284.58 crore for the assessment year 2023–2024 had been served to its subsidiary Zydus Healthcare Ltd.

Zydus Lifesciences said in a regulatory filing that Zydus Healthcare Ltd (ZHL), a wholly-owned subsidiary, has received an intimation under section 143(1) of the Income Tax Act, 1961 (IT Act), determining demand of Rs 284.58 crore.

It further stated that the notification was received from the CPC’s Income Tax Department for the assessment year 2023–2024.

It stated that ‘apparent mistakes while processing its return of income’ are what led to the determination of the demand.

‘The company strongly believes that once the rectification will be made, the entire demand will be deleted,’ stated Zydus Lifesciences.

ZHL has already expressed disagreement with the demand on the Income Tax Department’s e-filing platform. In opposition to the aforementioned notification, it will also submit a Rectification Application under section 154 of the IT Act with the CPC and the Jurisdictional Assessing Officer, according to the filing.

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