Shares of Polycab India Limited may remain in focus after the company disclosed that it has received a tax demand of ₹327.45 crore from the Income Tax Department. The company has indicated that it will take legal steps to challenge the order, citing computational errors and disputing certain additions made during the assessment.

Details of the Tax Assessment

On March 3, 2026, Polycab India received an assessment order from the Office of the Deputy Commissioner of Income Tax, Mumbai. The order relates to the Assessment Year (AY) 2024–25, corresponding to the Financial Year (FY) 2023–24.

According to the order, the tax authorities made disallowances and additions totalling ₹41.87 crore during the assessment. Based on these adjustments, the department raised a tax demand of ₹327.45 crore under Section 156 of the Income Tax Act, 1961.

Company Flags Possible Calculation Errors

Polycab India, after reviewing the order in consultation with its tax advisors, has stated that the tax demand appears to exceed the additions made in the assessment. The company believes the discrepancy may be due to computational or clerical mistakes in the calculation of tax and interest.

Such errors, if confirmed, can be corrected through a rectification process under Section 154 of the Income Tax Act, which allows the tax authorities to amend apparent mistakes in the assessment order.

Legal Steps Initiated

The company has already begun the process of filing a rectification application before the jurisdictional Assessing Officer to address the suspected calculation errors.

In addition, Polycab India is preparing to file a formal appeal against the additions and disallowances made in the assessment order. The appeal will be pursued through the appropriate legal channels under the provisions of the Income Tax Act, 1961.

Financial Impact

Despite the sizeable tax demand, Polycab India has stated that it does not expect any material impact on its financial position or operations. The company maintains that the demand is legally unsustainable and intends to pursue appropriate remedies to resolve the matter.

Investors are likely to monitor further developments in the case, including the outcome of the rectification request and the appellate proceedings.

Summary:
Polycab India Limited has received a tax demand of ₹327.45 crore from the Income Tax Department for AY 2024–25. The demand follows additions of ₹41.87 crore in the assessment order. The company believes the demand includes computational errors and has initiated a rectification application under Section 154 while also preparing to file an appeal against the assessment. Polycab stated that it does not expect the order to materially impact its financial position or operations.

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