Hindustan Unilever Receives ₹1,986.25 Crore Income Tax Demand Order

Hindustan Unilever Ltd (HUL) has disclosed that it received an assessment order from the Assistant Commissioner of Income Tax, Central Circle 5(2), Mumbai, under Sections 143(3) and 144C(13) of the Income Tax Act, along with a notice of demand under Section 156. 

The order pertains to the assessment year 2021–22 and involves transfer pricing adjustments and corporate tax disallowances.

Key Development

According to HUL’s stock exchange filing dated October 31, 2025, the tax authorities have made transfer pricing adjustments in the nature of disallowance of payments to related parties and challenged the valuation of such transactions. 

Additionally, corporate tax disallowances related to depreciation claims have been included in the assessment. The total demand raised amounts to ₹1,986.25 crore.

Company Response

HUL clarified that the order will not materially affect its financials, operations, or other activities. The company has stated its intention to appeal the order to the appropriate appellate authority within the permissible timeline. 

The management emphasised that all relevant documentation and compliance measures were duly followed during the assessment period.

Read More: Hindustan Unilever Scheme of Arrangement Sanctioned by NCLT for Ice Cream Business Demerger!

HUL Share Price Performance

As of October 31, 2025, HUL share price closed at ₹2,461.20 per share, reflecting a decline of 0.34% from the previous closing price.

Conclusion

HUL plans to challenge the ₹1,986 crore tax demand order through legal recourse while maintaining that the order has no significant operational or financial impact on the company’s ongoing business.

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