Timken India tax demand significantly reduced by income tax department

Timken India Limited announced on December 26, 2025, that the office of deputy commissioner of income tax, Circle 1, Jamshedpur, issued a rectified order, lowering the tax demand against the company. This update follows an earlier order concerning the assessment year 2022-23. The initial demand notice under Section 156 of the Income Tax Act, which included interest, sought INR 74,76,70,348.

The rectification order, dated December 24, 2025, reduces the tax demand to INR 32,47,28,750. This adjustment came after Timken India filed a rectification petition on December 19, 2025, arguing that the tax calculation was based on an erroneous rate of 34.94% instead of the applicable 25.168%.

Despite the reduction, Timken India maintains that the orders and demand notices are "erroneous, flawed and are not sustainable." The company plans to appeal to the appropriate authority to have these orders and notices quashed or rectified, stating it does not anticipate any immediate financial or monetary impact.