Hindustan Unilever Limited received an assessment order from Mumbai's Income Tax authority demanding ₹1,986.25 crore related to transfer pricing and depreciation claims for FY 2020-21. The company assures no financial or operational impact and plans to appeal within the stipulated timeline.
                                        
                        
	Hindustan Unilever Limited (HUL) has disclosed receipt of an assessment order under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961. The order, received on October 30, 2025, from the Assistant Commissioner of Income-Tax, Central Circle 5(2), Mumbai, includes a notice of demand amounting to ₹1,986.25 crore.  
	 
	The tax authorities have challenged HUL's transfer pricing transactions, specifically disallowing payments made to related parties and questioned the valuation of such transactions. Additionally, certain corporate tax claims related to depreciation for the financial year 2020-21 (Assessment Year 2021-22) have been disallowed.  
	 
	Despite the significant tax demand, HUL has clarified that this assessment order will not materially impact its financials, operations, or any other business activities. No penalties or restrictions have been imposed, and no non-compliances were identified in the communication. The company has committed to filing an appeal with the appellate authority within the prescribed timeframe to contest the order.  
	 
	Notable Updates  
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		Assessment order demands ₹1,986.25 crore in income tax for FY 2020-21  
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		Transfer pricing adjustments challenge related-party payments and depreciation claims  
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		No material financial or operational impact expected by HUL  
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		No penalties or non-compliance reported  
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		Company to file appeal promptly within legal deadlines  
	This disclosure aligns with regulatory requirements under the Listing Regulations and exemplifies HUL's commitment to transparent corporate governance and compliance.  
	 
	Sources: Hindustan Unilever Limited official release, Income Tax Authority Mumbai notifications.