VLS Finance Resolves ₹26 Crore Tax Demand, Files Compliance Update

VLS Finance Ltd. has submitted its Secretarial Compliance Report for the fiscal year ending March 31, 2026. The filing confirms the company has successfully and favourably resolved a tax demand of ₹25.97 crore for Assessment Year 2022-23.

However, the company continues to navigate active income tax proceedings. For Assessment Year 2023-24, an under-reported income addition of ₹6.74 crore is under appeal. For Assessment Year 2024-25, the company noted an income tax addition of ₹1,33,830 and a tax demand notice of ₹35,875. Applications for waivers and rectifications are pending for these ongoing matters.

This filing provides shareholders with an update on the company's adherence to regulatory standards. While a past tax liability has been settled, the ongoing tax proceedings introduce continued compliance considerations for the non-banking financial company (NBFC). VLS Finance has faced past regulatory scrutiny, including advice from SEBI for stock exchanges to take action over listing regulation non-compliance.

Investors will be monitoring the outcomes of these pending applications, particularly the penalty waiver application for AY 2024-25 and the rectification application for the AY 2023-24 appellate order. These resolutions will further clarify the company's compliance status.