<h1>Vodafone Hit with Rs.11,217.95 Crore Tax Demand for Default u/s 201(1) of Income Tax Act 1961.</h1> The Income Tax department has issued a tax demand of Rs.11,217.95 crore to Vodafone International Holdings BV, declaring it an assessee in default under section 201(1) of the Income Tax Act, 1961. This action follows Vodafone's failure to deduct tax under section 195 before paying US $11,076 million to Hutchinson Telecommunications International Limited. The demand must be settled within 30 days of receiving the notice. This decision aligns with the Supreme Court of India's directive on September 27, 2010, instructing the Income Tax Assessing Officer to determine and quantify Vodafone's tax liability within four weeks.