Indian Overseas Bank Receives ₹502 Crore Income Tax Demand, Plans Appeal

Chennai, March 10, 2026: Indian Overseas Bank (IOB) has received a tax demand notice of ₹502.29 crore from the Income Tax Department for the Assessment Year (AY) 2017–18, according to a regulatory filing.

The communication was received from the Joint Commissioner of Income-tax, Non-Corporate Circle-8, Chennai, following the implementation of an order issued by the Income Tax Appellate Tribunal (ITAT).

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Demand Notice Issued Under Income Tax Act

The demand notice was issued under Section 156 of the Income Tax Act, 1961, which pertains to the recovery of tax dues following assessment or appellate orders.

The notice relates to re-computation of income and disallowances in claims made by the bank in its income tax returns for AY 2017-18.

Bank to Challenge the Order

Indian Overseas Bank said it plans to challenge the order before the appropriate appellate forum within the prescribed timelines.

The bank stated that it has adequate factual and legal grounds to support its position and expects relief based on previous rulings of appellate authorities.

No Expected Financial Impact

Despite the demand, the bank indicated that no financial or operational impact is expected at this stage, as it intends to dispute the entire amount.

According to the filing, the bank believes that the demand may eventually be resolved in its favour after the appeal process.

About Indian Overseas Bank

Founded in 1937 and headquartered in Chennai, Indian Overseas Bank is a public sector bank under the Government of India offering retail, corporate, and international banking services.

The bank operates a wide network of branches across India and overseas, providing services such as retail banking, corporate lending, MSME financing, and digital banking solutions.