Hindustan Unilever Ltd (HUL) announced on Friday, 31 October 2025, that it has received a ₹1,986 crore tax demand notice from the Mumbai Assistant Commissioner of Income Tax, as disclosed in its exchange filing. The order, issued under Section 143(3) read with Section 144C(13) of the Income Tax Act, 1961, challenges the company’s valuation of related party transactions and certain corporate tax claims, particularly depreciation adjustments.
According to the filing, tax authorities have raised transfer pricing objections and disallowed specific payments to related parties. HUL stated that it will appeal the order before the appellate authority within the stipulated timeframe. The company clarified that the tax notice, which pertains to the financial year 2020–21, will not have a material effect on its finances or operations.
On Friday, HUL shares fell 0.34% to ₹2,461.20 after the announcement. The stock has gained nearly 6% year-to-date in 2025 but remains down 2.65% over the past year. The company’s market capitalization stood at approximately ₹5.78 trillion as of 31 October 2025.
