Mankind Pharma Faces ₹111.68 Crore Tax Demand from Income Tax Department

Pharmaceutical giant Mankind Pharma Ltd has received a tax demand of ₹111.68 crore from the Income Tax Department for the Assessment Year 2021-22.

The demand, raised under Section 143(3) read with Section 144C(3) of the Income-tax Act, 1961, was issued by the Deputy Commissioner of Income Tax, Central Circle 29, New Delhi, on February 25, 2025. The company received the order through the IT portal on February 27, 2025.

Tax Demand Details

According to the Income Tax Department, the demand is based on adjustments related to Section 80IC/80IE, which deals with tax benefits for industrial undertakings in certain regions, and the disallowance of various expenditures under Section 37(1) of the Act. The company disclosed the development in a regulatory filing, stating:

“The IT authority vide assessment order dated February 25, 2025, has raised additional tax demand (including interest) of INR 111.68 crores under section 143(3) read with Section 144C(3) of the Income-tax Act, 1961 (‘the Act’) on account of adjustment made u/s 80IC/80IE of the Act and disallowance of various expenditures u/s 37(1) of the Act.”

Mankind Pharma to Contest the Order

Mankind Pharma has expressed its disagreement with the tax demand, asserting that it is not legally tenable. The company maintains that it has strong legal and factual grounds to challenge the order and plans to file an appeal under the applicable laws.

“The company believes that the demand under the above-referred order is not tenable in law. The company has adequate factual and legal grounds to substantiate its position and does not expect any material impact on the financials or operations of the company due to the said order. The company would pursue an appeal against the said order under the applicable laws,” Mankind Pharma stated.

No Expected Impact on Financials

Despite the hefty tax demand, Mankind Pharma reassured stakeholders that the issue is unlikely to have any material impact on its financials or operations. The company remains confident in its legal position and intends to follow the necessary legal procedures to challenge the order.

The development comes as part of the ongoing tax assessments and scrutiny faced by large corporations in India, with tax authorities closely reviewing financial statements and compliance with tax laws.

Stock Performance 

On March 03, 2025, Mankind Pharma share price traded 3.30% lower at ₹2,214 at 9:35 AM (IST). Mankind Pharma’s share price reached a 52-week high of ₹3,050, and a 52-week low of ₹1,910.10. As per BSE, the total traded volume for the stock stood at 1471 shares with a turnover of ₹32.91 lakhs.

At the current price, Mankind Pharma shares are trading at a price-to-earnings (P/E) ratio of 45.15x, based on its trailing 12-month earnings per share (EPS) of ₹48.92, and a price-to-book (P/B) ratio of 8.45, according to exchange data.

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