New India Assurance Hit by Rs 124.98 Crore Tax Notice

New India Assurance has received a Rs 124.98 crore demand notice from the Income Tax Department for disallowed payments to auto dealers for the 2016-17 assessment year. The company plans to appeal the order and will list the amount as a contingent liability in its financial statements.

In a significant move by the Income Tax Department, public sector insurer New India Assurance has been slapped with a demand notice amounting to Rs 124.98 crore. The notice, received on March 19, 2025, pertains to disallowed payments made to auto dealers for the assessment year 2016-17.

The order comes from the National Faceless Assessment Centre, part of efforts to streamline tax assessments. New India Assurance has disclosed that this amount will be documented as a contingent liability in their financial records.

Despite the hefty penalty, the insurer is preparing to challenge the order through an appeal with the National Faceless Appeal Centre or explore other legal remedies.

(With inputs from agencies.)