Hindustan Unilever Limited (HUL), one of India’s leading fast-moving consumer goods (FMCG) companies, has received a tax demand notice of ₹1,987 crore from the tax authorities for the financial year 2020–21. The order reportedly concerns issues related to the valuation of certain related-party transactions and claims of depreciation. HUL stated that the notice was issued following an assessment order under the Income Tax Act.
Key Highlights
- HUL receives ₹1,987 crore tax notice for FY21 over related-party valuation and depreciation issues.
- Company to appeal order; expects no material impact on operations or financial performance.
In its regulatory filing, the company clarified that it does not expect any material financial impact on its business or operations due to the notice. HUL further announced its intention to challenge the order through the appropriate appellate process, reaffirming confidence in the strength of its accounting and compliance practices.
The company emphasized that it has consistently maintained transparency in its financial reporting and adherence to tax laws. While this development adds to the list of high-value tax disputes faced by Indian corporations, HUL’s proactive approach indicates that it will pursue all legal remedies available.
Also Read: Income Tax Audit Deadline Extended to December 10, 2025
Hindustan Unilever, known for its iconic brands such as Dove, Surf Excel, Lifebuoy, and Horlicks, remains one of India’s most valuable FMCG firms, with strong fundamentals and a track record of regulatory compliance despite occasional tax-related challenges.
