IIFL2026-08-25IIFL2026-08-25in-capmkt:StageOfTheLitigationIsConcludedOrDisputeIsResolvedMemberIIFL2026-08-25in-capmkt:AtTheTimeOfBecomingPartyToLitigationOrAssessmentOrAdjudicationOrArbitrationOrDisputeMemberIIFL2026-08-25OppositePartyAsPerSubPara8OfParaBDomain1IIFL2026-08-25in-capmkt:DevelopmentInRelationToProceedingsMemberIIFLIIFL Finance Limited532636NAINE530B01024Pendency of any litigation(s) or dispute(s) (Sub-para 8-Para B)Regularly till the litigation is concluded or dispute is resolvedAt the time of becoming the party to any litigation, assessment, adjudication, arbitration or disputeNewtrue2026-08-2420:00:0022:15:002026-08-25Income Tax Department2026-08-24TribunalAssistant Commissioner of Income Tax, Central Circle – 4(4), MumbaiSubsidiaryIIFL Home Finance Limited (Material subsidiary of IIFL Finance Limited)The IT Authority vide assessment order received dated August 24, 2026, raised a tax demand u/s 158BC(1)(c) of the Income Tax Act, 1961 on IIFL Home Finance Limited, pursuant to Block assessment proceedings arising from search and seizure action.The principal additions/ disallowances in the assessment order relate, inter alia, to overriding commission (“ORC”) income (approximately ₹490 crore), deduction claimed under section 36(1)(viii) of the Incometax Act, 1961 (approximately ₹305 crore), interest strip assets (approximately ₹392 crore), and ESOP expenses (approximately ₹53 crore). IIFL Home Finance Limited believes that it has substantial factual and legal grounds to contest these additions/disallowances, including, inter alia, that: (i) the income relating to ORC and interest strip assets has already been offered to tax, and appropriate credit for taxes/income so offered has not been fully considered; (ii) the issue under section 36(1)(viii) concerns the interpretation of “general reserves” for determining the applicable statutory limit; and (iii) the treatment of ESOP expenses is contrary to the legal position relied upon by IIFL Home Finance Limited. Several of these matters have also been examined in earlier scrutiny assessments. IIFL Home Finance Limited is pursuing the appellate, rectification and other remedies available under applicable law. Based on its assessment of the merits and advice received, IIFL Home Finance Limited does not presently expect the matter to have any material impact on its financial position or operations.₹963.39 crore (including surcharge and cess)IIFL Home Finance Limited will file appeal within 30 days, as statutorily allowed under Income Tax Act, 1961 ("the Act"), before appropriate appellate authority under the Act.Development in relation to proceedingsAssessment orders from Income Tax Authority dated May 12, 2026, raising a tax demand under Section 158BC(1)(c) of the Income Tax Act, 1961.2026-05-12Grant of stay of outstanding demand, subject to payment of 5% of the demand in five instalments vide stay order dated August 05, 2026 and intimation for payment of first installment.Company