Polycab India Share Price in Focus; Faces ₹327.45 Crore Tax Demand: Legal Steps Underway

Polycab India Limited has been issued a tax demand of ₹327.45 crore by the Income Tax Authority. The company is preparing to challenge this demand, citing computational errors and unsustainable claims under the Income Tax Act, 1961. 

Details of the Tax Demand on Polycab India Limited 

On March 3, 2026, Polycab India Limited received an assessment order from the Office of the Deputy Commissioner of Income Tax, Mumbai. The order pertains to the Assessment Year 2024-25, relevant to the Financial Year 2023-24.  

The order includes disallowances and additions amounting to ₹41.87 crore, resulting in a tax demand of ₹327.45 crore under section 156 of the Income Tax Act, 1961. 

The company, in consultation with its tax advisors, believes that the demand exceeds the additions due to computational or clerical errors. These errors are considered rectifiable under section 154 of the Act. 

Polycab's Legal Strategy and Financial Impact 

Polycab India Limited has initiated the process of filing an application for rectification before the jurisdictional Assessing Officer. The company is also preparing to appeal against the additions made in the assessment order under the applicable provisions of the Income Tax Act, 1961. 

The company, in consultation with its tax advisors, maintains that the tax demand is not sustainable in law. Polycab does not anticipate any material impact on its financial position or operations due to this order. 

Read More: Xiaomi Takes on India Tax Authority Over Royalty Tariffs in Closely Watched Case! 

Polycab India Share Price Performance 

As of March 05, 2026, at 9:22 AM, Polycab India share price on NSE is trading at ₹8,305.00, up by 0.25% from the previous closing price. 

Conclusion 

Polycab India Limited is actively addressing the tax demand of ₹327.45 crore issued by the Income Tax Authority. By seeking rectification and preparing an appeal, the company aims to resolve the issue without significant financial repercussions. 

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