TTK Healthcare Limited, a leading player in pharmaceuticals and consumer healthcare, has informed the stock exchanges about a tax interest demand of ₹2.61 crore issued by the Income Tax Department, Corporate Ward 3(1), Chennai. The demand follows an order from the Commissioner of Income Tax (Appeals) [CIT(A)], dated February 19, 2025, and received by the company on February 24, 2025.

According to the disclosure, the CIT(A) order withdraws the interest granted under Section 244A of the Income Tax Act, which amounted to ₹2,37,16,908/- for Assessment Year 2015-16. Additionally, the company has been charged an interest under Section 234D, amounting to ₹24,58,546/-, bringing the total demand to ₹2,61,75,454/-.

Company’s Response and Future Course of Action

TTK Healthcare has stated that it disagrees with the order and intends to file an appeal before the appropriate authorities. The company remains confident of obtaining relief in the matter.

In its filing with BSE and NSE, TTK Healthcare has assured stakeholders that the financial implications of the demand will be addressed appropriately and that the appeal process is being pursued as per legal provisions.

Breakdown of the Tax Interest Demand:

• Withdrawal of interest under Section 244A: ₹2,37,16,908/-
• Interest levied under Section 234D: ₹24,58,546/-
• Total demand: ₹2,61,75,454/-

Legal and Financial Implications

The demand primarily arises due to interest adjustments related to past tax assessments. Section 244A of the Income Tax Act, 1961 deals with interest on refunds, while Section 234D pertains to interest on excess refunds granted provisionally before final assessments.

The company has not indicated any immediate financial burden, as it is actively contesting the order and expects a favorable resolution. However, if the appeal is unsuccessful, TTK Healthcare may have to account for the liability in its financial statements.

Impact on TTK Healthcare’s Stock and Investors

While tax-related disputes are not uncommon, investors will closely monitor the outcome of the appeal. Any adverse decision could impact the company’s financial position and cash flow management. However, given TTK Healthcare’s confidence in obtaining relief, market reaction is expected to be muted unless further adverse developments arise.

Regulatory Compliance and SEBI Disclosure

TTK Healthcare has complied with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring timely disclosure of material financial information to stock exchanges.

This disclosure aligns with the SEBI circular (SEBI/HO/CFD/CFD-PoD1/P/CIR/2023/123 dated July 13, 2023), which mandates transparent reporting of litigations, regulatory actions, and financial risks.

Conclusion

The ₹2.61 crore tax interest demand imposed on TTK Healthcare Limited marks a significant financial and regulatory event. However, the company’s planned appeal signals proactive legal engagement to challenge the order. Investors and stakeholders will await further updates on the appeal outcome, which could influence the company’s financial outlook and regulatory standing.

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