Hindustan Unilever Ltd (HUL) has announced that it has received a Rs 1,986 crore tax demand notice from the Mumbai Assistant Commissioner of Income Tax for the financial year 2020–21, according to a regulatory filing. The order has been issued under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961, along with a Notice of Demand under Section 156 of the same Act.
As per media reports, the tax authorities have made transfer pricing adjustments and challenged the valuation of certain related-party transactions. They have also raised corporate tax disallowances in the nature of depreciation claimed by the company. HUL has stated that it plans to file an appeal with the appellate authority to contest the demand within the permissible timeline.
In its filing, the company has clarified that the tax notice will not have any material impact on its financial position or operations. The FMCG major’s shares closed 0.34% lower at Rs 2,461.20 on Friday, 31 October 2025, after the market announcement.
HUL’s market capitalisation has stood at over Rs 5.78 trillion, with the company’s shares delivering more than 18% returns to investors over the past five years.
