Yes Bank Share: Tax Department Slaps ₹244.2 Crore Demand Linked To AY 2016-17 Reassessment

Yes Bank share came into the spotlight on April 16 after the bank disclosed a fresh income-tax demand of ₹244.20 crore. The demand was issued by the Jurisdictional Assessing Officer (JAO), Mumbai, as part of a reassessment and rectification process for the assessment year 2016–17.

According to the regulatory filing made by the bank, the tax demand stems from a correction made by the JAO to an earlier reassessment order. The original tax was calculated based on the reported income; however, the revised version recalculates the liability using the assessed income. The updated demand also includes revised interest components under Sections 234A and 234B of the Income Tax Act.

Bank Flags Discrepancies, Plans Appeal

Yes Bank stated that the new demand appeared to be “unsubstantiated” and lacking in clear explanation. The bank said it will immediately file a rectification application and may also appeal the order.

“The bank believes that it has adequate factual and legal grounds to reasonably substantiate its position and does not expect any material adverse impact on its financial, operational or other activities due to the said order,” the bank said in its filing.

Background Of The Case

This latest demand is part of a longer tax proceeding that began with an initial assessment order issued in December 2018 for AY2016–17. That order included various additions and disallowances. A reassessment followed in March 2022, which has now culminated in the current rectification order dated April 15, 2025.

The development also comes close on the heels of another demand notice served to the bank for ₹2,209 crore related to the assessment year 2019–20. In that case, the reassessment concluded without any additions or disallowances, yet the tax department raised a fresh demand. The bank had also contested that order.

Yes Bank Share Price Performance

On April 16, 2025, Yes Bank share price opened at ₹17.60, up from its previous close of ₹17.52. By 02:40 PM, the stock was trading at ₹17.85 on the NSE, reflecting a 1.88% intraday gain.

The stock’s 52-week high of ₹28.55 was recorded on April 29, 2024. Its 52-week low of ₹16.02 was reached on March 12, 2025.

Conclusion

The fresh tax demand has once again brought Yes Bank under scrutiny. While the bank remains confident of a favourable outcome, investors will be closely watching how the matter unfolds. The outcome could influence sentiment around the Yes Bank share price in the near term.

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