India's largest property firm, DLF, said it might have to pay additional tax of up to Rs 400 crore following a special audit of its income for the fiscal 2005-06, by the income-tax authorities.

The I-T department had last year ordered a special audit of the 2005-06 financial year accounts of the realty firm.

'The Special (Audit) Report had recommended that the tax department (re)assess approximately Rs 1,200 crore as additional income,' the company said in a filing to the Bombay Stock Exchange.

DLF further said, the assessing officer had issued an assessment order on May 6 'adding substantially most of the amount suggested by the Special Audit Report'.

Financial Express