Yes Bank: Rs 2209 Crore Tax Notice Slapped - Bank Responds

Yes Bank Share News: In a major development, Yes Bank said that it has received a demand notice from the Income Tax Department of Rs 2,209.17 crore for the assessment year (AY) 2019-20.

The notice came despite the reassessment proceeding not resulting in any further disallowances or additions to the bank's income declaration. The bank stated the demand in its regulatory filing as "prima facie without any basis."

Background and Reassessment Order

Yes Bank had already received an order under Section 144 of the Income Tax Act, 1961, dated September 30, 2021. The order had released the bank's refund according to the initial income tax return submitted for AY 2019-20. Nevertheless, the assessment year was reopened by the Income Tax Department in April 2023.

The National Faceless Assessment Unit issued the reassessment order on March 28, 2025.

According to Yes Bank, this order has not brought any change to the aggregate reassessed income found in the original assessment. Therefore, the basis for filing the reassessment fell through.

Although the unchanged outcome of the assessment, a computation sheet and notice of demand under Section 156 of the Act, given simultaneously, have brought to the notice a tax demand and interest of Rs 2,209.17 crore.

What Did Yes Bank Say?

Yes Bank has responded by disagreeing with the notice and labelling the demand as baseless. "The bank believes that it has adequate grounds to reasonably substantiate its position in this matter and does not expect any material adverse impact on financial, operational, or other activities due to the said order," the statement noted.

The bank intends to seek an appeal and file rectification proceedings to dispute the reassessment order under relevant laws.

Yes Bank assured stakeholders by pointing out that this surprise tax demand is not likely to have any negative material effect on its operations or financial health.

Yes Bank Share Price

As of the last trading session, the stock closed at Rs 16.89 on the BSE showing a decline of 1.69 per cent from the previous close of Rs 17.18. The stock opened at Rs 17.23 and touched an intraday high of Rs 17.50, with a low of Rs 16.82.

The private lender's shares are trading 68.7 per cent lower than its 52-week high of Rs 28.50.  The bank has a market capitalisation of Rs 52,957.10 crore.