SBI Share Price in Focus; Receives ₹6,337 Crore Income Tax Demand for AY 2023–24

State Bank of India (SBI) has received a significant tax demand from the Income Tax Department, highlighting ongoing disputes related to assessment proceedings and adding to its existing litigation exposure. 

₹6,337 Crore Tax Demand Arises from Disallowances in Assessment Proceedings 

SBI has received an assessment order dated March 19, 2026, under Sections 143(3) read with 144C(3) and 144B of the Income Tax Act, 1961, raising a demand of ₹6,337.52 crore (₹63,37,52,52,550), including interest, for the Assessment Year 2023–24.  

The demand stems from disallowances made by the Assessment Unit on various grounds during scrutiny proceedings. 

The bank noted that similar issues have been contested in prior years, indicating that the current demand is part of an ongoing pattern of tax disputes rather than a one-off development. Given the size of the demand, the disclosure crosses the materiality threshold and has been formally reported to exchanges. 

Bank To Challenge Order Amid Ongoing Litigation on Similar Matters 

SBI has stated that it will take appropriate legal steps, including filing an appeal before the relevant appellate authorities within the prescribed timelines.  

The bank is already engaged in litigation on comparable matters from previous assessment years, suggesting a structured legal approach to resolving such tax disputes. 

This indicates that the demand is subject to judicial review and may undergo revisions depending on the outcome of appellate proceedings, a common occurrence in large tax cases involving financial institutions. 

No Impact on Operations Despite Large Demand Size 

Despite the substantial quantum of the tax demand, SBI clarified that there is no impact on its operations or business activities.  

This reflects the bank’s strong balance sheet position and its ability to absorb or contest such liabilities without affecting day-to-day functioning. 

Large financial institutions often face tax adjustments during scrutiny assessments, and such demands typically remain contingent until final resolution through legal channels. 

Read More: Upcoming IPO: SBI Funds Management Filed DRHP with SEBI! 

SBI Share Price Performance  

As of March 20, 2026, SBI share price is closed at ₹169.40 per share, reflecting a surge of 0.49% from the previous closing price.  

Conclusion 

The ₹6,337 crore tax demand represents a material regulatory development for SBI, but remains a contested liability rather than a confirmed outflow. With the bank already maintaining that there is no operational impact and the situation is likely to evolve through appellate proceedings. 

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