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An official information of the bank given to the stock exchange on Friday, March 20 has created a lot of stir in the financial world. Actually, the Income Tax Department has given a huge tax demand notice of entire Rs 6,338 crore to SBI. Actually, this entire matter is deeply related to the tax assessment for the financial year 2023-24 (assessment year).

According to the information given by the bank, the Income Tax Department had recently conducted a strict scrutiny of the books of the bank. During this in-depth review, the tax authorities disallowed some of the expenses or claims shown by the bank, which is called 'disallowance' in financial language.

Including these claims rejected by the Income Tax Department and the huge interest charged on them, this amounts to a huge liability of Rs 6,338 crore. According to the exchange filing, this order has been issued on March 19, 2026 under the strict provisions of Sections 143(3), 144C(3) and 144B of the Income Tax Act.

Is this a new mistake or an old problem?

The bank management has clarified in its report that many similar cases regarding tax rules and claims have been going through legal battles for the last few years. This simply means that this latest notice of the Income Tax Department is not the result of any new or isolated mistake. Rather, this is part of a long series of old tax disputes going on between the department and the bank.

Since this amount of Rs 6,338 crore is very large and falls within the materiality threshold of the bank, in compliance with corporate transparency, the bank has shared this information without any delay with its shareholders and the general public.

What will be the impact on common customers?

SBI has clarified that this huge demand will not have even the slightest impact on its business activities or daily operations. The functioning of the bank will continue smoothly as before.

Also, the bank is not going to accept this decision quietly. State Bank of India has assured that it will take appropriate legal action against this tax demand. This includes challenging the order and filing an official appeal before the relevant appellate authorities within the stipulated time limit.