India, March 26 -- Foodtech major Swiggy has received an income tax demand notice of INR 53.5 Lakh. Besides the tax, the company has also been asked to pay an interest of INR 45.44 Lakh, taking the total amount to INR 98.9 Lakh.

In an exchange filing, the company said that the order was passed by the deputy commissioner of Income Tax department, TDS Circle, Bengaluru, and pertains to April 2017 to March 2018 period.

"Non-deduction of tax under section 194C of the Income-tax Act, 1961 on the cancellation charges paid to the merchants by the company," the filing said about the violation which the company was alleged to have made.

Swiggy said it believes it has strong arguments against the order and is looking to appeal against the order....