Aditya Birla Capital Limited has disclosed, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that it has received an income tax notice dated 15 May 2026 under Section 143(1) of the Income Tax Act, 1961. The notice was issued by the Centralised Processing Centre (CPC), Income Tax Department, and pertains to Assessment Year 2025-26 (Financial Year 2024-25), resulting in a tax demand of Rs. 194.54 crore.
Background: ABFL Amalgamation
The tax demand is directly linked to the amalgamation of Aditya Birla Finance Limited (ABFL), a wholly owned subsidiary of the Company, with Aditya Birla Capital Limited. Pursuant to the order of the Hon’ble National Company Law Tribunal (NCLT) dated 24 March 2025, ABFL was amalgamated with the Company with effect from 1 April 2025, with an appointed date of 1 April 2024. Following the amalgamation, the Company filed a consolidated return of income for FY 2024-25 (AY 2025-26) under its own PAN on 10 December 2025, with a revised return filed on 31 December 2025, offering to tax the combined income of ABFL and the Company.
Details of the Tax Demand
The Company had claimed credit for Advance Tax of Rs. 222 crore paid by ABFL and Tax Deducted at Source (TDS) of Rs. 816 crores deposited or deducted under ABFL’s PAN, in line with the amalgamation. However, the CPC did not grant the advance tax credits relating to ABFL, resulting in the income tax demand of Rs. 194.54 crore. The key details of the notice are summarised below:
| Parameter: | Details |
| Notice Date: | 15 May 2026 |
| Issuing Authority: | Centralised Processing Centre (CPC), Income Tax Department |
| Applicable Section: | Section 143(1) of the Income Tax Act, 1961 |
| Assessment Year: | 2025-26 (Financial Year 2024-25) |
| Tax Demand Raised: | Rs. 194.54 crore |
| Quantum of Claims: | Rs. 222 crore |
| Reason for Demand: | Non-migration of tax credits from ABFL’s PAN to Company’s PAN |
Company’s Position and Next Steps
Aditya Birla Capital has stated that the demand has arisen solely on account of technical reasons pertaining to the non-migration of tax credits from ABFL’s PAN to the Company’s PAN consequent to the amalgamation, even though the corresponding income has already been offered to tax by the Company. The Company has confirmed that this demand does not represent any short payment of tax. It has further indicated that a necessary application will be filed with the Income-tax Department for rectification and appropriate credit of taxes already paid. The Company does not foresee any material impact on its financial, operational, or other activities as a result of this demand.
