Indian Overseas Bank Share Price in Focus; Receives ₹766 Crore Income Tax Demand Notice for AY 2015-16

Indian Overseas Bank (IOB) has been issued a demand notice under Section 156 of the Income Tax Act, 1961, for the assessment year 2015-16.  

The notice, received from the Deputy Commissioner of Income Tax, Non-Corporate Circle-8, Chennai, demands a sum of ₹766,02,83,968. 

Details of the Income Tax Demand Notice 

On March 2, 2026, IOB received a demand notice from the Joint Commissioner of Income Tax, Non-Corporate Circle-8, Chennai.  

The notice pertains to a re-computation of income and disallowances made in the bank's income tax returns for AY 2015-16. The demand amounts to ₹766,02,83,968. 

The bank is currently in the process of challenging the order in the appropriate forum. IOB believes it has sufficient factual and legal grounds to contest the disallowances and additions made in the order.  

The bank expects that the entire demand will be nullified, with no impact on its financial, operational, or other activities. 

Potential Financial Implications 

The demand notice indicates that a penalty under Section 271(1)(c) may be imposed separately. However, IOB is confident that the appeal process will lead to the demand being overturned, thus avoiding any financial implications. 

Actions Taken by Indian Overseas Bank 

IOB has initiated the process of filing an appeal against the disallowances and additions made in the order.  

The bank is adhering to the prescribed timelines for this process. Based on precedents and orders from appellate authorities, IOB is optimistic about substantiating its position in this matter. 

Read More: NSE Issues Public Warning on Fake SEBI STT Notices, Urges Investors to Stay Alert! 

Indian Overseas Bank Share Price Performance 

As of March 04, 2026, at 9:17 AM, Indian Overseas Bank share price on NSE was trading at ₹34.79 down by 1.16% from the previous closing price.  

Conclusion 

Indian Overseas Bank's receipt of a demand notice for ₹766 crore for AY 2015-16 has prompted the bank to take legal action. By filing an appeal, IOB aims to resolve the issue without any adverse financial impact. 

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