By Admin 
State Bank of India: The country’s largest bank SBI (State Bank of India) has received a tax demand notice of Rs 6337.52 crore from the Income Tax Department. The officials gave information about this notice received by the bank on March 19 to the stock market on March 20. The demand includes interest and has arisen due to various disallowances made by the assessment unit during the review process, the bank said in an exchange filing on Friday, March 20.
Why did the bank get the notice?
The bank has received this notice under various sections of the Income Tax Act (section 143(3), 144C(3) and 144B) for the assessment year 2023-24. It is being told that the Income Tax Department has not accepted some of the expenses and deductions (disallowances) shown by the bank. For this reason, this notice has been sent along with the tax and interest charged on it.
The bank gave clarification
SBI says that this is not an isolated case. SBI said that similar tax cases are going on in the court in the last years also. This shows that the current demand is not an isolated issue, but is a part of the ongoing disputes. Since this amount is more than the ‘Materiality Threshold’ (important limit), the bank has informed its stakeholders. The bank will now approach the court against this order and challenge it legally by filing an appeal within the time limit.
The bank assured
SBI has assured its investors that this tax notice will not have any impact on the functioning of the bank or other business activities. Here on Friday, after this news, the movement in bank shares intensified. On this day, SBI shares closed at Rs 1058 on NSE after a slight fall.
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