In a significant financial development, public sector lender Indian Overseas Bank (IOB) announced on Thursday, September 19, that it has received an order from the Income Tax Department confirming a refund of ₹123.87 crore. The refund, granted under Section 250 of the Income Tax Act, 1961, includes interest under Section 244A of the Act and pertains to the assessment year 2021-22.
According to the bank's regulatory filing, the order was issued on August 22, 2024, and subsequently uploaded on the Income Tax portal on September 18, 2024. Indian Overseas Bank became aware of the refund order the following day, on September 19.
This refund is tied to a previous ruling by the Commissioner of Income Tax (Appeals) on December 12, 2023. The refund, amounting to ₹123.86 crore, comprises both the principal and interest. IOB noted that this development marks a positive financial outcome for the bank in the current fiscal year.
This announcement aligns with IOB’s broader financial management strategy, as it continues to improve its balance sheet while complying with regulatory mandates. The bank's receipt of the refund adds to its financial reserves, enhancing liquidity for its operations.
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