Religare Enterprises Subsidiary Faces Income Tax Demand
Religare Enterprises Limited announced on March 18, 2026, that its material subsidiary, Care Health Insurance Limited (CHIL), has received two Orders dated March 17, 2026, under Sections 147 and 143(3) of the Income-tax Act, 1961, from the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) Mumbai. These orders pertain to the Assessment Years 2023-24 and 2024-25, respectively, and raise a cumulative income tax demand of Rs. 140.20 Crores, including interest.CHIL maintains that the tax demand and applicable interest were incorrectly computed. The company is currently preparing to file a rectification application with the authority. CHIL estimates that the rectified tax demand, including interest, will be approximately Rs. 96 Crores following the rectification order.
Furthermore, CHIL plans to file an appeal against the Orders before an appropriate forum. The assessment orders relate to disallowances including provisions for claims incurred but not reported (IBNR), unsettled claims, and certain expenses under Sections 40(a)(ia) and 37(1) of the Act. CHIL notes that similar issues have been adjudicated in favor of the company in previous years by various judicial forums.
The authority’s demand of Rs. 140.20 Crores would be payable by CHIL, and the financials of CHIL are consolidated with Religare Enterprises Limited.
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