NEW DELHI: Hindustan Unilever Limited (HUL), one of India's largest fast-moving consumer goods (FMCG) companies, has been served with an assessment order from the income tax authorities demanding Rs 1,986.25 crore ($238 million) for the financial year (FY) 2020-21.
The order was received by the company on October 30, 2025, from the Assistant Commissioner of Income-Tax, Central Circle 5(2), Mumbai.
The communication is an assessment order under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961 (ITA), along with a notice of demand under Section 156 of the ITA.
The assessment order includes transfer pricing adjustments. This involves the tax authorities challenging the valuation of or disallowing payments made to related parties.
The tax demand also involves disallowances specifically concerning depreciation claimed by the company.
The demand of Rs 1,986.25 crore pertains to the assessment year (AY) 2021-22, corresponding to the financial year 2020-21.
Hindustan Unilever Limited has stated that it will file a necessary appeal with the appellate authority within the permissible timeline.
Despite the substantial size of the tax demand, the company asserted in its regulatory filing that there is "no material impact on financial, no impact on operation or other activities of the company due to the order".
This disclosure was made to the stock exchanges (BSE and NSE) on Friday.
