This follows a January notice, wherein the Income Tax Department directed the finance company to conduct a special audit. IIFL Finance had then said it was a procedural step in the company’s ongoing income tax assessment for a multi-year block period.
“We believe we have strong factual and legal grounds to contest the demand and will pursue appropriate remedies under the law. The company has always conducted its affairs in full compliance with applicable tax laws and regulations. Our business fundamentals, liquidity position, and growth outlook remain strong, and operations continue as normal,” said Nirmal Jain, founder and managing director, IIFL Finance, to Business Standard, adding that the lender will file appeals against the order within the prescribed timelines under the law.
Jain also highlighted that the income tax demand effectively concludes the assessment proceedings against IIFL Finance. The removal of this major overhang on the lender likely drove the sharp rally in its shares, despite weakness in the broader market.
IIFL Finance reported a 148 per cent year-on-year (YoY) surge in profit after tax to ₹ 623.2 crore for the March quarter (Q4 FY26), compared with ₹ 251.4 crore in the year-ago period, driven by strong operating performance and improving asset quality. Loan assets under management (AUM) rose 38 per cent YoY to ₹ 1.08 trillion as of March 31, 2026.
According to Jain, India’s macroeconomic fundamentals continue to remain strong, supported by domestic consumption, stable financial markets, and healthy credit demand.
“While global geopolitical developments are being closely monitored, we remain confident about the growth outlook. Our gold loan business continues to perform well, supported by strong customer demand, improving distribution reach, and disciplined execution,” he told Business Standard.
Source link
#IIFL #Finance #shares #jump #crore #income #tax #demand #notice
