IIFL Finance Shares Drop 8% on Tax Demand

IIFL Finance shares fell sharply by around 8% on August 25 after its subsidiary, IIFL Home Finance, received an income tax demand of Rs 963.39 crore. The tax demand includes cess and surcharge and relates to assessment proceedings covering April 2018 to February 2025. The development weighed on investor sentiment and triggered a sharp decline in IIFL Finance shares during Tuesday’s trading session. IIFL Home Finance has disputed the tax additions and is pursuing appellate remedies against the assessment order. Separately, IIFL Finance has secured a stay on another tax demand of Rs 475.56 crore. The Rs 963.39 crore demand against IIFL Home Finance remains the key development for investors as the company evaluates the matter through the available legal and appellate process.