Tata Capital, a Tata Group NBFC, has received a tax demand notice to the tune of Rs 413.18 crore. The reassessment order was received by the Tata company from the tax authorities for financial year 2017-18.

Tata Capital said that the tax demand order was issued by the Deputy Commissioner of Income Tax, Mumbai. The commissioner issued the tax notice under the Income-tax Act.

The tax demand notice pertains to Tata Capital Financial Services Ltd (TCFSL).

Tata Capital Financial Services was merged with Tata Capital with effect from April 1, 2023.

The tax demand of Rs 413 crore also includes interest of Rs 202.72 crore.

According to the details available, the tax demand was related to alleged short credit of taxes paid and certain disallowances.

Tata Capital, in a statement, said that the tax demand is based on errors in the computation and that the demands of Rs 209.52 crore of tax and Rs 202.72 crore of interest are not sustainable.

"It will take necessary steps to file rectification application/ appeal. The company expects a favourable outcome in respect to the above matter," Tata Capital said.

Tata Capital said that it has filed appeals against disallowances with a tax impact of Rs 26.31 crore and expressed confidence in receiving relief.

Tata Capital share price closed at Rs 316.60 on Friday (March 20).