Hindustan Unilever Limited Faces Income Tax Demand Worth Rs 1559.69 Crore
Hindustan Unilever Ltd (HUL), India’s leading Fast-Moving Consumer Goods (FMCG) company, has received an income tax order, raising demand of Rs 1559.69 crore for the financial year 2021-22 (AY 2022-23).
The company, on 8th January 2026, informed the stock exchanges about the receipt of the above order under the mandatory disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
As per the disclosure, the company received an assessment order dated 7th January 2026 under section 143(3) read with section 144C(13) of the Income Tax Act, 1961 and a demand notice of Rs 1559.69 crore under section 156 of the Income Tax Act from the Assistant Commissioner of Income Tax, Central Circle 5(2), Mumbai.
The order relates to transfer pricing adjustments and certain corporate tax disallowances. As per the order, the tax demand arises from transfer pricing adjustments related to payments made to related parties and some corporate tax adjustments, such as the disallowance of depreciation.
HUL has stated that the order does not have a significant impact on the financials or operations of the company. The company has decided to file an appeal before the appellate authority to challenge this order.
