Care Health Insurance Limited (CHIL), a material subsidiary of Religare Enterprises, has been issued two tax demand orders totalling ₹140.20 crore by the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) Mumbai. The orders, dated 17 March 2026, pertain to the assessment years 2023-24 and 2024-25. CHIL contends that the tax demand and applicable interest have been incorrectly computed by the authority. Consequently, the company is in the process of filing a rectification application. According to CHIL, once the rectification order is passed, the revised tax demand, including interest, is expected to be approximately ₹96 crore.
The tax demand arises from several disallowances made by the assessing officer, including provisions for claims incurred but not reported (IBNR) and claims incurred but not enough reported (IBNER), unsettled claims, non-deduction of TDS on certain expenses, and marketing and advertisement expenses deemed inadmissible under Section 37(1) of the Income-tax Act, 1961. CHIL notes that these issues have previously been adjudicated in its favour by various judicial forums, including the Delhi High Court and the Income Tax Appellate Tribunal.
CHIL plans to appeal against the orders before an appropriate forum, based on advice from tax consultants. The financials of CHIL are consolidated with those of Religare Enterprises, the listed entity.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Kinjal and reviewed by News Desk before publication.
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