Poonawalla Fincorp faces penalty over pre-acquisition income tax issue

Poonawalla Fincorp Limited announced on November 17, 2025, that it has received an order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The order sustains a penalty of INR 16,39,570 under section 270A of the Income Tax Act, 1961. This penalty, equivalent to 50% of the tax amount, pertains to the financial year 2018-19, a period before Poonawalla Fincorp's acquisition.

The penalty was levied due to the disallowance of a deduction for education cess amounting to INR 93,84,000, which was claimed in a revised tax return for FY 2018-19. Despite the upheld penalty, Poonawalla Fincorp stated that it has always maintained high standards of governance and compliance with regulatory and statutory matters, reaffirming its commitment to these standards.

The company has indicated that while the penalty is significant in monetary terms, there is "no material impact on financial, no impact on operation or other activities of the Company due to the said Order." The order was communicated via email on November 16, 2025.