Niva Bupa Receives Rs 28.37 Crore Tax Demand Order from Income Tax Department
Niva Bupa Health Insurance Company Limited, a standalone health insurer in India providing comprehensive health insurance and travel insurance, issued a disclosure to NSE Ltd and BSE Ltd regarding receipt of a demand order.
Background of the case
The company stated that it received a demand order of Rs 283,745,380, including tax, under section 143(3) read with section 156 of the Act from the Office of the Assistant Commissioner of Income Tax.
The company added that the assessing officer has increased the company’s total taxable income by making some adjustments in the assessment order. The main reasons for these adjustments were the following:
- Certain marketing and advertising expenses claimed by the company were disallowed because they were considered not allowable under Section 37(1) of the Income Tax Act.
- The officer did not allow the provision of claims incurred but not reported (IBNR) and claims Incurred But Not Enough Reported (IBNER).
Key Details of the case
| Particular | Details |
| Issuing Authority | The Office of the Assistant Commissioner of Income Tax Central Circle 5(3), Mumbai |
| Period for which communication would be applicable |
Assessment year 2023-24 |
| Date of receipt | 14 March 26 |
| Tax Demand | Income Tax Demand of Rs 28,37,45,380 (including an interest of Rs 7,10,47,664 |
Company’s Further Step
The company disagrees with the order and has the right to challenge it. So, it plans to file an appeal with a higher authority. The company will also mention this matter properly in its financial statements as required.
Company’s Disclosure Compliance
The Niva Bupa Health Insurance Company Limited made the above disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”).
