Income Tax Dept Demands ₹4.36 Crore from RCF, PSU Assures No Financial Hit as Appeals Already Pending Across AY 2020-21, 2021-22, 2023-24
Mumbai, March 20, 2026: Rashtriya Chemicals and Fertilizers Limited (RCF) , a Government of India Undertaking, has received a demand notice from the Income Tax Department amounting to ₹4.36 crore, the company informed stock exchanges on Friday.
The PSU, however, has moved quickly to reassure investors, stating that the demands are "erroneous" and that appeals and rectification applications are already pending before appellate authorities. No future financial outflow is anticipated, RCF clarified.
Demand Breakdown: Three Assessment Years
| Assessment Year | Amount | Nature of Demand | Status |
|---|---|---|---|
| AY 2020-21 | ₹19.11 Lakh | Penalty on education cess claimed | Rectification filed; Appeal pending before CIT(A) |
| AY 2021-22 | ₹2.14 Crore | Penalty on disallowed adjustments | Appeal pending before CIT(A) |
| AY 2023-24 | ₹2.03 Crore | Wrong disallowance | Rectification application in process |
Key Details at a Glance
| Parameter | Details |
|---|---|
| Total Demand | ₹4,36,49,106/- (approx. ₹4.36 crore) |
| Authority | Income Tax Department |
| Receipt Date | March 18, 2026 (3:37 PM via email) |
| Years Involved | AY 2020-21, AY 2021-22, AY 2023-24 |
| Company Status | Government of India Undertaking |
What RCF Said
In its regulatory filing, the company stated:
*"The order demands the Company to pay ₹4,36,49,106/-. However, the company is about to file a submission stating the matters are already pending before CIT(A) and has filed rectification application."*
The company further emphasized:
"The Company does not anticipate any future outflows in monetary terms, as the underlying demands are erroneous and are expected to be deleted or rectified by the Commissioner of Income-tax (Appeal) / Assessing Officer."
Pending Appeals Already in System
RCF disclosed that appeals against the AY 2020-21 and AY 2021-22 demands were already filed in March 2023 and July 2023, respectively, and are pending hearing before the Commissioner of Income Tax (Appeals). For AY 2023-24, a rectification application is being filed.
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 , with details provided as per Schedule III requirements.
The filing was signed by J. B. Sharma, Executive Director (Legal & Company Secretary), Rashtriya Chemicals and Fertilizers Limited.
About RCF
Rashtriya Chemicals and Fertilizers Limited (RCF) is a Government of India Undertaking under the Ministry of Chemicals and Fertilizers. Established in 1978, the company is a leading player in the Indian fertilizer industry, manufacturing urea, complex fertilizers, and industrial chemicals. RCF operates manufacturing units at Trombay (Mumbai) and Thal (Raigad) , playing a vital role in India's agricultural self-sufficiency.
CIN: L24110MH1978GOI020185
BSE Scrip Code: 524230
NSE Symbol: RCF
Stock Impact
Investors and market participants will closely monitor any further developments, though the company's clarification on no anticipated financial outflow is expected to cushion any negative sentiment.