U.S. IRS imposes $32,350 penalty on Dr. Reddy’s arm

A step-down wholly owned U.S. subsidiary of pharma major Dr. Reddy’s Laboratories has been levied a $32,350.20 penalty by the U.S. Internal Revenue Service (IRS).

The penalty on Dr. Reddy’s Laboratories Inc., the subsidiary, is due to misclassification of fiscal year reference at the time of tax payment, the Hyderabad-based parent company said citing the order from the Department of Treasury, Internal Revenue Service, Cincinnati. The company received the final transcript dated September 25, 2026, from the Department, on October 2, 2026 classifying an amount $32,350.20 as a penalty levied by IRS.

Based on its evaluation, of the order, there is no material impact on financials, operations or other activities of the company, Dr. Reddy’s said in a filing on Saturday.