104.7 Cr Income Tax Demand on Care Health Insurance

The Income Tax Department has sent a demand notice for Rs 104.77 crore to Care Health Insurance, a division of Religare Enterprises, for the 2020–21 and 2021–22 assessment years.

In a regulatory filing, REL stated that the demand notice was delivered from the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2), Mumbai. It was stated that Care Health Insurance's finances are integrated with those of the business and that the insurance firm is responsible for paying any income tax demands that may be necessary.

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A ₹104.7 crore tax claim has been made against Care Health Insurance by the Income Tax Department. The demand

Care Health would challenge the aforementioned order before a suitable venue within the allotted time frames, the statement stated, based on the recommendation of tax advisers.

A business that receives a sizable tax demand will either resolve, fight, or negotiate the liability using a structured process. They file a response and ask for clarifications following an internal review and compliance check.

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Companies can file an appeal before the CIT (A) if the demand is unjustified. They can also file an appeal before the Commissioner of Income Tax (Appeals) if the tax demand is irrational. After then, firms elevate the issue to the Income Tax Appellate Tribunal (ITAT) if the appeal is denied. Additionally, businesses have the option to petition for a Dispute Resolution Panel (DRP) if the dispute includes transfer pricing or foreign taxation.

Care Health Insurance will probably use financial and legal tactics to contest the demand or bargain for a lower fine. The strength of their case and the supporting evidence will determine whether they choose to settle or go to trial.

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