Puravankara Receives Income Tax Demand Notices of ₹51.87 Crore for FY 2016-17 and FY 2017-18

Income Tax Demand Notices Disclosed

Puravankara Limited received income tax demand notices on March 31, 2026, from the Deputy Commissioner of Income Tax, Central Circle-1(2), Bengaluru. The notices pertain to assessment year 2016-17, amounting to ₹39.34 crore, and assessment year 2017-18, for ₹12.53 crore.

Nature of Tax Disallowances

For assessment year 2016-17, the demand arose due to disallowance of certain expenses and certain additions on a notional basis. The assessment year 2017-18 demand resulted from disallowance of certain expenses and denial of indexation for the cost of acquisition of shares. The notices followed assessment orders under Section 147 read with Section 143(3) of the Income Tax Act, provisions that govern reassessment proceedings.

Company Response and Appeal Plans

Puravankara believes it has strong legal and factual grounds to contest the demand and is preparing to file an appeal. The company is currently assessing the implications of these orders on its financial statements but asserts confidence in its appeal. The real estate developer disclosed this development under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Developer Context

Founded in 1975, Puravankara Limited is one of India's most admired and trusted developers among the top real estate companies in India, with headquarters in Bengaluru. The company's track record includes approximately 20 million square feet of projects: approximately 12.8 million square feet completed and approximately 7.2 million square feet of ongoing projects, with a family of 55,000 plus happy residents. Provident Housing, a 100% subsidiary of Puravankara Limited, carries its legacy with a portfolio of remarkable residential developments across 9 cities: Bengaluru, Chennai, Coimbatore, Goa, Hyderabad, Kochi, Mumbai, Mangalore and Pune.

Broader Tax History

Tax disputes are not uncommon in real estate development. In a separate, more recent favorable development, the Commissioner of Income Tax (Appeals) passed orders in Puravankara's favor on May 4, 2026. Previously, the tax authorities had disallowed the company's deduction claimed under Section 80-IB of the Income-tax Act, 1961, but the CIT(A) allowed the deduction in orders for assessment years 2010-11, 2013-14, and 2014-15. Such reversals at the appellate stage demonstrate the complexity of tax assessments and the possibility of successful challenges through India's multi-tier appeals framework.

Public Disclosure

Company Secretary and Compliance Officer Sudip Chatterjee signed the intimation letter dated April 1, 2026. The company informed both BSE Limited and National Stock Exchange of India Limited about these developments as part of its ongoing disclosure obligations to keep investors informed about material events.