Care Health Insurance Faces Rs 104.77 Crore Tax Demand

Religare Enterprises Ltd's subsidiary, Care Health Insurance, has received a tax demand notice of Rs 104.77 crore for 2020-21 and 2021-22. The company plans to appeal against the notice, based on advice from tax consultants. The demand was issued by Mumbai's Income-Tax department.

Religare Enterprises Ltd (REL) has announced that its subsidiary, Care Health Insurance, received a tax demand notice amounting to Rs 104.77 crore for the assessment years 2020-21 and 2021-22. The notice was issued by the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) in Mumbai, according to a regulatory filing by REL.

The financials of Care Health Insurance are consolidated with REL, indicating the income tax demand, if applicable, should be paid by the insurance company itself. This significant demand poses a notable financial implication for the firm.

In response, Care Health, guided by its tax consultants, plans to contest the order. An appeal is expected to be filed before an appropriate forum within the stipulated timelines. This move demonstrates the company's intent to challenge the demand and potentially mitigate financial liabilities.

(With inputs from agencies.)