Jana Small Finance Bank Limited announced that pursuant to the provisions of Regulation 30 of the SEBI Listing Regulations, company is enclosing herewith a disclosure regarding the Order passed on 18th March 2024 (received on 19th March 2024 by the Bank), by the National Faceless Appeal Centre, Income Tax Department. Order passed under section 250 of the Income-tax Act, 1961 for Assessment Year 2015-16 i.e., Financial Year 2014-15. The National Faceless Assessment Centre had passed an order dated 31st March 2022 disallowing certain expenditure incurred by the Bank.

Vide the said order the National Faceless Assessment Centre had raised a demand of INR 762. 3 million (including interest of INR 189.1 million) without giving credit to the taxes paid/tax credit available to the Company. The Company had filed an appeal before the National Faceless Appeal Centre challenging the above order.

The National Faceless Appeal Centre has passed an order disposing off the appeal. While the disallowance made by Assessing Officer amounting to INR 250.3 million has been upheld. Further, the National Faceless Appeal Centre directed the Assessing Officer to allow the credit of taxes paid/credit available of INR 565.2 million after due verification along with interest.

The Company has already remitted appropriate amount of income-tax to Income-tax authorities under protest with respect to above disallowances, hence the Company is not expecting any additional cash outflows due to the above order. The disputed demand of INR 762.3 million against the Bank stands nullified and the Bank is not expecting any additional cash outflows after this order is given effect to. The Bank would be filing an appeal before the Income Tax Appellate Tribunal against the said appeal order by Income-tax Authorities relating to disallowance of the expenses amounting to INR 250.3 million.