Cairn India gets Rs. 20,495 crore tax notice
The Income Tax Department has slapped a Rs. 20,495-crore tax demand on Cairn India for failing to deduct withholding tax on alleged capital gains made by its erstwhile promoter, Cairn Energy. Cairn India said it does not agree with the tax demand and will pursue all possible options to protect its interest. “Cairn India Ltd has received an order from the Income Tax Department today for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings Limited (CUHL), our erstwhile parent company, a subsidiary of Cairn Energy Plc,” the company said in a regulatory filing. Cairn India said it has always been fully compliant with all Indian income tax laws. “Income tax assessments, including transfer pricing assessment were duly completed for FY 2006-07, earlier,” it said.