IIFL FINANCE : DISCLOSURE ON ASSESSMENT ORDER

• IIFL Home Finance Limited received an assessment order dated August 24, 2026, raising a tax demand under section 158BC(1)(c) of the Income Tax Act, 1961. • The demand arises from block assessment proceedings following a search and seizure action. • The principal additions/disallowances relate to overriding commission income (approx. ₹490 crore), deduction claimed under section 36(1)(viii) (approx. ₹305 crore), interest strip assets (approx. ₹392 crore), and ESOP expenses (approx. ₹53 crore). • IIFL Home Finance Limited believes it has substantial grounds to contest these additions. • The company is pursuing appellate and other remedies, and does not presently expect a material impact on its financial position or operations. • Separately, IIFL Finance Limited's earlier disclosure regarding a tax demand of ₹475.56 crore has been updated: the IT Authority has granted a stay of recovery until December 31, 2026, or disposal of the company's appeal, subject to payment of ₹23.78 crore (5% of disputed demand) in installments. • The first installment of ₹5 crore was paid on August 13, 2026. • The company believes it has a strong case on merits. • IIFL Home Finance Limited's quantum of demand is ₹963.39 crore (including surcharge and cess). • IIFL Finance Limited's quantum of demand is ₹23.78 crore payable (instead of ₹95.12 crore). Impact: Neutral (Ongoing tax proceedings, but no material financial impact currently expected; stay granted on one demand.)

IIFL Finance Limited

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