Regulatory / Tax Benefit
New India Assurance Receives ₹255.68 Crore Income Tax Refund for AY 2019-20
NSE
niacl
BSE
540769
The New India Assurance Company Limited informed stock exchanges that it has received an income tax refund amounting to ₹255.68 crore, including interest, for Assessment Year 2019-20.
PRICE-SENSITIVE TRIGGER
Event: Receipt of Income Tax Refund
Type: Regulatory / Tax Benefit
Impact: Positive
Immediate Effect: The refund strengthens the company’s liquidity position and may provide a modest positive impact on cash flows and treasury management.
Key Metrics:
- Total Refund Received: ₹255.68 crore
- Income Tax Component: ₹233.10 crore
- Interest Component: ₹22.57 crore
- Assessment Year: 2019-20
Highlight Metric:
- New India Assurance received a total income tax refund of ₹255.68 crore from the Income Tax Department.
What Happened ?
New India Assurance informed the exchanges that the Income Tax Department has issued a refund totaling ₹255.68 crore for Assessment Year 2019-20.
The refund includes both the principal tax amount and applicable interest. The disclosure was made under Regulation 30 of SEBI (LODR) Regulations, 2015.
Key Details
Refund Details:
- Total refund amount received stands at ₹255.68 crore.
- Refund pertains to Assessment Year 2019-20.
- Income tax refund component is ₹233.10 crore.
- Interest received on the refund amounts to ₹22.57 crore.
Regulatory Disclosure:
- The company disclosed the development to both BSE and NSE under SEBI LODR Regulations.
- The disclosure was signed by Company Secretary Abhishek Pagaria.
Note:
- The refund is primarily a balance sheet and cash flow-related development and does not directly impact the company’s underwriting performance.
Risk Analysis
Key Risks:
- One-time nature of the refund limits long-term earnings impact.
- No direct improvement in underwriting margins or insurance operations.
- Future tax litigations or reassessments could remain a monitoring factor.
Worst Case Scenario:
- If future tax assessments create additional liabilities or disputes, the net benefit from the refund could reduce over time.
Risk Level: Low
Company Commentary
- The company stated that the Income Tax Department has issued the refund amounting to ₹255.68 crore.
- Refund details for AY 2019-20 were disclosed in the filing submitted to stock exchanges.
Official Exchange Filing: The New India Assurance Company Limited