Polycab tax demand cut to ₹57.6 crore from ₹327 crore after rectification order by income tax department

Polycab India Limited has received a rectification order from the Office of the Deputy Commissioner of Income-Tax, Mumbai, reducing its aggregate income-tax demand for Assessment Year 2024-25 from ₹327.45 crore to ₹57.58 crore.The original assessment order, passed under Section 143(3) of the Income Tax Act, 1961, on 3rd March 2026, had included certain disallowances and additions aggregating to ₹41.87 crore, resulting in a notice of demand under Section 156 of the Act.

The rectification order, issued on 9th March 2026, addresses computational and clerical errors identified in the earlier assessment. Polycab filed a rectification application under Section 154 of the Income Tax Act to correct these errors.
The company, in consultation with its tax advisors, stated that the revised income-tax demand of ₹57.58 crore still reflects the non-granting of advance tax credit, which is rectifiable under Section 154. Polycab has initiated the process for filing an application for rectification before the jurisdictional Assessing Officer.Further, the company expressed that the tax demand raised pursuant to the original assessment order is not sustainable under law. Polycab is also in the process of filing an appeal against the additions made in the said order under the applicable provisions of the Income-Tax Act, 1961.

The company does not anticipate any material impact on its financial position or operations due to the rectification order. The reduction in tax demand reflects the company’s proactive approach in addressing assessment discrepancies while ensuring compliance with statutory provisions.

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Polycab India Limited shares closed at ₹7,725 on the NSE on Tuesday, down ₹503.50 or 6.12%.