Zydus Life Subsidiary slaps with Income Tax demand of Rs.280 Crore
Zydus Life, an Indian pharmaceutical company, announced that its subsidiary, Zydus Healthcare Limited, received an Income Tax demand of Rs.284.58 crore.
Zydus Healthcare Limited, a wholly-owned subsidiary of Zydus Life, received an intimation from the CPC, Income Tax Department, for the assessment year 2023-2024, the firm said in an exchange filing on December 26.
The tax notice was given as a result of the following apparent errors in completing its income tax return.
1. Unauthorized claim for deduction under sections 80-IE and 80-JJAA of the IT Act;
2. Given a tax credit for taxes deducted/paid that is insufficient.
According to the company’s assessment and counsel, ZHL does not expect the abovementioned intimation to have any major financial impact because the aforementioned modifications are not legal and are entirely defendable in the circumstances of the case.
ZHL has already objected to the aforementioned requirement on the Income Tax Department’s e-filing platform. ZHL will also submit a Rectification Application under Section 154 of the IT Act, both before the CPC and the Jurisdictional Assessing Officer, in response to the aforementioned intimation.
As per the press release, the company is confident that once the correction is made, the entire demand will be erased.
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