New Delhi: Income Tax Department imposed a Rs 20,495 crore tax demand on Cairn India Ltd for allegedly failing to pay taxes on gains made in a share transfer transaction.
Cairn India does not agree with the tax demand and will pursue all possible options to protect its interest, it said. In a regulatory filing, Cairn India said the demand comprises of Rs 10,248 crore in tax and the remainder Rs 10,247 crore in interest payout.
In addition to the tax demand of Rs 10,247 crore, there will be interest and penalty, Cairn Energy said. The tax notice comes days after Cairn Energy, the firm’s former promoter, was slapped with a Rs 10,247 crore tax demand for an alleged Rs 24,500 crore worth capital gains it made in 2006 while transferring all its India assets to a new company, Cairn India, and getting it listed on the stock exchanges.
