Shriram Finance Penalty Reduced Significantly by Tax Authority
Shriram Finance's penalties for FY19 and FY20 have been substantially reduced by the Commercial Tax Officer. The penalty for FY19 is now ₹70.43 lakh, down from ₹13.04 crore. For FY20, the penalty is reduced to ₹1.02 crore from ₹24.06 crore. Rectification orders were received on March 30, 2026.
The reduction in penalties and tax demands, while positive, relates to past financial years and involves amounts that are material but do not fundamentally alter the company's ongoing operations or financial health.
The significant reduction in penalty amounts and tax demands from the tax authorities is a positive development for the company, reducing its financial liabilities.
Shriram Finance Limited has received Rectification Orders from the Commercial Tax Officer, Chennai South, Tamil Nadu, significantly reducing previously imposed penalties. These penalties were initially levied on erstwhile Shriram City Union Finance Limited (now amalgamated with Shriram Finance) for the Financial Years 2018-19 and 2019-20.
For FY 2018-19, the original order included a total tax demand of ₹13,03,53,551, interest of ₹15,73,02,807, and a penalty of ₹13,03,53,551. As per the rectified order dated March 30, 2026, the reduced total tax demand is ₹70,42,822, with interest of ₹84,98,852 and a reduced penalty of ₹70,42,822.
Similarly, for FY 2019-20, the original order comprised a total tax demand of ₹24,06,19,502, interest of ₹12,01,51,803, and a penalty of ₹24,06,19,502. The rectified order reduces these to a total tax demand of ₹1,02,20,890, interest of ₹1,06,00,042, and a reduced penalty of ₹1,02,20,890.
The company was informed of these rectifications on April 1, 2026, and has made the intimation to the stock exchanges in compliance with SEBI Listing Regulations.
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