The Income Tax Department has imposed a fine of Rs 564.44 crore on public sector Bank of India. The bank said on Thursday that it is in the process of filing an appeal against this order before the Income Tax Commissioner, National Faceless Appeal Center (NFAC). According to Bhasha news, Bank of India said in the information given to the stock market that it has received an order from the Income Tax Department, Assessment Unit under Section 270A of the Income Tax Act, 1961 related to the assessment year 2018-19.
The bank expects the entire penalty demand to be reduced
According to the report, considering the preference/orders of the appellate authorities, the bank in its response said that it has sufficient factual and legal basis to justify its position in the matter. The bank said that hence it is expected that the entire penalty demand will be reduced. In such a situation, there will be no impact on the financial, operational or other activities of the bank. Shares of Bank of India closed at Rs 137 on BSE, up 3.79 per cent from its previous close.
Fine was imposed on these banks also
According to a report, earlier, a fine of Rs 1.4 crore was imposed on Bank of India for violating RBI directions on interest rates, customer service and provisions of Credit Information Companies Rules, 2006. Bandhan Bank and IndoStar Capital Finance Ltd were also fined recently. A fine of Rs 29.55 lakh was imposed on Bandhan Bank for not following certain instructions. IndoStar Capital Finance Ltd imposed a penalty of Rs 13.60 lakh for non-compliance with ‘Monitoring of Frauds in NBFCs (Reserve Bank) Guidelines, 2016’ as well as KYC provisions.
These penalties were imposed following the statutory inspection conducted by the RBI to assess the financial position of the banks. It is important to understand that these penalties relate to regulatory compliance matters and do not cast doubt on the validity of any customer transaction or agreement.
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