Titan Company Limited has submitted a regulatory disclosure to BSE Limited and the National Stock Exchange of India Ltd regarding receipt of penalty orders from the Income Tax Department.
Details of Penalty Orders
The company has received two separate penalty orders from the Assessment Unit of the Income Tax Department:
1. For Assessment Year 2017-18:
- Nature of Order: Penalty Order under section 270A of the Income Tax Act, 1961
- Amount of Penalty: INR 56.67 Lakhs
- Date of Receipt: 26th June 2026
- Alleged Violation: Penalty for adjustment made on the assessment order regarding under reporting of income
2. For Assessment Year 2019-20:
- Nature of Order: Penalty Order under section 270A of the Income Tax Act, 1961
- Amount of Penalty: INR 370 Lakhs
- Date of Receipt: 26th June 2026
- Alleged Violation: Penalty for adjustment made on the assessment order regarding under reporting of income
Total Penalty Amount
The combined penalty amount across both assessment years is INR 4.27 Crore (INR 56.67 Lakhs + INR 370 Lakhs).
Company Response and Impact
The company is in the process of filing an appeal against both penalty orders. The disclosure explicitly states: "There is no material impact on the financials, operations or other activities of the Company due to the said penalty Orders."
Timing of Disclosure
The delay in filing this intimation from the receipt date of June 26, 2026 to the disclosure date of July 14, 2026 was attributed to the company's internal review of the orders and evaluation of appropriate next steps.