Max Estates’ Subsidiary Receives ₹21.13 Lakh Income Tax Demand Order from NFAC
Max Estates reported that its subsidiary, Max Square Limited, received a Rs. 21.13 lakh income tax demand from NFAC over interest earned on fixed deposits
Max Estates Limited has reported that its subsidiary, Max Square Limited, has received an income tax demand order of Rs. 21.13 lakh from the National Faceless Appeal Centre (NFAC), part of the Income Tax Department.
According to the company, the demand relates to the assessment year 2021–22 and was issued following an appeal order passed under Section 250 of the Income Tax Act, 1961. The dispute is centered around how interest income earned on fixeddeposits was treated for tax purposes.
Max Square Limited had parked certain unutilized funds from its project in fixed deposits for a short period. The company believed that the interest earned on these deposits should be treated as a capital receipt, meaning it was not regular income but linked to the overall cost of the project. However, the tax authorities held a different view.
The NFAC ruled that the interest earned on these deposits was taxable under the head “Income from Other Sources.” The authority added Rs. 63.77 lakh to the total taxable income of the company, which led to a tax demand of Rs. 21.13 lakh.
Max Estates clarified that this tax demand is not material in terms of the company’s overall financials. It also stated that the order does not affect the day-to-day operations of the company or its subsidiary. Max Square Limited is currently considering its legal options and may file an appeal before a higher tax authority to challenge the decision.
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The company shared this development to maintain transparency and compliance with corporate disclosure norms.
About Max Estates’ Subsidiary – Max Square Limited
Max Square Limited is a wholly owned subsidiary of Max Estates Limited, which is part of the Max Group, a well-known Indian conglomerate with interests in real estate, healthcare, and senior living.
Max Square Limited operates in the real estate development sector, focusing primarily on the development and management of commercial office spaces and mixed-use real estate projects. It plays a key role in Max Estates’ broader vision to deliver high-quality, sustainable, and modern workspaces that align with the evolving needs of businesses and professionals.
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