Mumbai: State-run insurer The New India Assurance Company Limited (NIACL) has received a tax demand notice of Rs 189.37 crore from the Income Tax Department. The notice relates to the assessment year 2023–24, as disclosed by the company in an exchange filing.
Details of the Order
The company said the order was passed under Section 143(3) of the Income Tax Act. NIACL received the notice on March 23, 2026. The tax demand amounts to Rs 1,89,37,08,470, making it a significant financial development for the insurer.
Reason Behind the Tax Demand
According to the document, the demand has arisen due to the disallowance of certain expenses claimed by the company. The Income Tax Department did not accept some of these expenses, which resulted in the additional tax liability.
Company Plans to Appeal
NIACL has stated that it will challenge the order. The company plans to file an appeal with the National Faceless Appeal Centre (NFAC) or explore other legal options available under the law.
Limited Immediate Financial Impact
The insurer clarified that it will treat the tax demand as a “contingent liability” in its financial statements. Experts believe that although the amount is large, the immediate financial impact may remain limited due to the ongoing appeal process and accounting treatment.
