New Delhi, 6 April (IANS). The country’s legendary pharma company Dr. Reddy Laboratories has received a tax demand notice of Rs 2,395 crore from the Income Tax Department.
This notice is about the merger with Dr. Reddy Holding Limited (DRHL).
Dr. Reddy Laboratories said in a regulatory filing on Saturday that the company received a tax notice from the office of Assistant Income Tax Commissioner of Hyderabad on 4 April 2025.
The notice questioned why the income avoided income should not be assessed during the merger.
The merger of DRHL in Dr. Reddy’s Laboratories was approved by the National Company Law Tribunal (NCLT), Hyderabad on 5 April 2022.
However, the merger came into effect from 1 April 2019 as per the approved plan. According to the filing, the Income Tax Department has given a demand notice of Rs 2,395.81 crore.
Responding to the notice, Dr. Reddy’s said that all legal and tax-related procedures have been followed in the merger.
The company said that they believe that no such income has been saved in the merger, which has not been taxed.
The company further said, “In this merger, all legal requirements including the Income Tax Act have been fully complied with.”
Dr. Reddy’s Laboratories said that he is currently reviewing the notice and will reply to the authority with necessary information.
The company said, “According to the merger agreement, the promoters of the company are responsible for boring any liability arising out of the merger.”
In case of any tax-related problem of merger, they are required to provide protection and assistance to the company and its officials.
Apart from this, the company assured that it is taking the matter seriously and will handle it according to legal procedures.
Dr. Reddy’s Laboratories shares closed at Rs 1,114 on Friday at Rs 1,114.
-IANS
ABS/
