Income Tax Department has slapped Rs 20,495 crore tax demand on Cairn India for failing to deduct withholding tax on alleged capital gains made by its erstwhile promoter, Cairn Energy Plc. Though, Cairn India is not agreeing with the tax demand and will pursue all possible options to protect its interest.
Earlier this week, the I-T Department had slapped a Rs 10,247 crore tax demand on Cairn Energy Plc for an alleged Rs 24,500 crore worth capital gains it made in 2006 while transferring all its India assets to a new company, Cairn India, and getting it listed on the stock exchanges.
