Yes Bank has recently received some good news on the tax front. On April 24, 2025, the bank got a rectification order from the Jurisdictional Assessing Officer (JAO) that deleted an income-tax demand of ₹2,209.17 crore. This massive tax demand was related to the Assessment Year (AY) 2019-20 and had earlier created quite a bit of confusion. Interestingly, the reassessment order had not changed the reassessed income from the original assessment, but an error in the computation sheet wrongly showed a huge tax liability, including interest.
Yes Bank Gets Relief from ₹2,209 Crore Tax Demand
Yes Bank did not take this error lightly. The bank immediately challenged the demand, calling it completely baseless, and started appeal and rectification proceedings. After reviewing the matter under Section 154 of the Income-tax Act, the JAO accepted the bank’s position and passed a rectification order. This move fully resolved the matter in favor of Yes Bank, bringing relief not only to the bank but also to its investors who had been watching the situation closely.
While this major issue has been sorted, Yes Bank is still dealing with another tax-related matter. The bank has received a fresh tax demand notice of ₹244.20 crore for Assessment Year 2016-17. This new demand came after a reassessment and rectification process, mainly adjusting interest calculations under Sections 234A and 234B. According to Yes Bank, this fresh demand lacks proper reasoning, and they plan to file a rectification application and may even appeal against the order.
The ₹244.20 crore demand stems from a reassessment order issued in March 2022, which aimed to correct earlier mistakes in computing reassessed income. However, Yes Bank has made it clear that they do not expect any material adverse impact from this fresh demand and are confident in resolving the issue through proper channels.
Yes Bank Share Price Target From 2024 To 2040
In summary, Yes Bank has successfully put to rest the huge ₹2,209.17 crore tax demand for AY 2019-20 through a rectification order. The bank is now focusing on tackling the ₹244.20 crore demand for AY 2016-17, standing firm that they have strong grounds for rectification or appeal. For Bank, clearing up such long-pending tax matters is a positive step forward as it continues its efforts to strengthen its financial position and win back full investor confidence.
