Hero MotoCorp Gets ₹605 Crore Tax Demand Notice From I-T Dept

New Delhi: Hero MotoCorp, India’s leading two-wheeler manufacturer, disclosed on Thursday that it has received demand notices from the Income Tax department totalling approximately ₹605 crore, inclusive of interest, spanning six assessment years.

The company confirmed receiving assessment orders and demand notices dated March 30, 2024, relating to six assessment years from the Income Tax department, as per a regulatory filing made. The notices involve a tax demand of ₹308.65 crore and interest amounting to ₹296.22 crore, concerning certain disallowances for the assessment years 2013-14 to 2017-18 and 2019-20.

Hero MotoCorp is currently evaluating the received orders and notices and plans to take suitable actions, including filing appeals and rectification applications.

The management believes that the raised demand is not sustainable and is unlikely to significantly impact the company’s financials, operations, or other activities.

Despite this development, the company’s shares closed marginally lower by 0.75 per cent at ₹4,522.30 apiece on the BSE.