Religare Subsidiary Faces Rs 140 Crore Tax Demand, Plans Appeal and Rectification

Religare Enterprises Limited ( (IN:RELIGARE) ) has shared an announcement.

Religare Enterprises has disclosed that its material subsidiary Care Health Insurance Limited has received two income tax assessment and demand orders from the Mumbai tax authorities for assessment years 2023-24 and 2024-25, raising a cumulative demand of Rs 140.20 crore including interest. The company contends that the computation is incorrect, plans to seek rectification that would reduce the demand to about Rs 96 crore, and, based on tax advisors’ guidance, will challenge the orders through an appeal process, signalling a potential but contested financial exposure for the group and its shareholders.

The tax demands stem from additions to CHIL’s taxable income, primarily disallowances related to insurance claim provisions, TDS issues, and certain marketing and other expenses, even though similar issues have previously been decided in the insurer’s favour by judicial forums. The outcome of the rectification and appeals will determine the ultimate liability, and the dispute highlights ongoing regulatory and tax scrutiny on health insurers’ accounting practices and deductions, which could influence future profit recognition and tax planning in the sector.

More about Religare Enterprises Limited

Religare Enterprises Limited is a diversified financial services group in India with interests spanning insurance and other financial products. Its material subsidiary, Care Health Insurance Limited, operates in the health insurance segment, offering coverage and related services to retail and corporate customers across the country.

Average Trading Volume: 68,299

Technical Sentiment Signal: Hold

Current Market Cap: 74.9B INR

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