Regulatory / Tax Dispute
GIC Re Receives ₹350 Cr Income Tax Demand Notice for FY23-24
NSE
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BSE
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General Insurance Corporation of India (GIC Re) has received a tax demand notice of ₹350.47 crore from the Income Tax Department for Assessment Year 2023-24. The company plans to challenge the order through legal channels.
PRICE-SENSITIVE TRIGGER
Event: Income Tax Demand Notice
Type: Regulatory / Tax Dispute
Impact: Negative
Immediate Effect: Potential financial liability and legal uncertainty
Key Metrics
- Tax Demand Amount: ₹350.47 Crore
- Assessment Year: FY2023-24
- Authority: Income Tax Department, Mumbai
- Order Type: Assessment Order + Notice under Section 156
Highlights
₹350 Cr tax demand raised by authorities
What Happened ?
GIC Re announced that it has received an assessment order and demand notice from the Income Tax Department.
The notice relates to Assessment Year 2023-24 and determines a payable amount of ₹350.47 crore.
Details Breakdown
Nature of Action
- Assessment order under Section 143(3)
- Demand notice under Section 156 of Income Tax Act
Key Additions / Disputes
- Transfer pricing additions: ₹88.84 crore
- Disallowance of expenses (Section 14A): ₹2.70 crore
- Payments to unregistered GST entities: ₹565.01 crore
- Amortization of investment premium: ₹52.81 crore
- Provision for doubtful debts: ₹329.48 crore
Company Response
- No immediate financial impact stated
- Company to file appeal before NFAC (National Faceless Appeal Centre)
- Legal consultation underway
Risk Analysis
Key Risks
- Potential financial outflow if appeal fails
- Litigation risk and prolonged resolution timeline
- Impact on earnings visibility if liability crystallizes
Worst Case Scenario
If the demand is upheld, GIC Re may face a significant cash outflow impacting profitability
Risk Level: High
Company Commentary
- Company intends to challenge the order legally
- Believes case has merit for appeal
- No immediate operational impact reported
Official Exchange Filing: General Insurance Corporation of India