State-owned New India Assurance Company Ltd on Tuesday (March 24) said it has received an income tax assessment order for the assessment year 2023–24 involving about ₹189.37 crore and will challenge the order before the National Faceless Appeal Centre.The order was issued by the National Faceless Assessment Centre under Section 143(3) of the Income Tax Act, 1961. The company received the communication on March 23, 2026, at 18:42 hours.
According to the disclosure, the assessment relates to disallowances of certain expenses identified during the proceedings. The amount involved in the order stands at about ₹189.37 crore, which the company said will be disclosed as a contingent liability in its financial statements.
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The insurer said it will pursue an appeal before the National Faceless Appeal Centre (NFAC) or explore other legal options against the order.Last year in September, New India Assurance Company Ltd received a tax demand of ₹2,379.13 crore on Tuesday (September 30), including penalties, for alleged non-payment of tax on coinsurance premiums and reinsurance commissions.The filing said the Order in Original (DRC-07), issued on September 29, 2025, by the Additional Commissioner of CGST & Central Excise, Palghar Commissionerate, claims that New India Assurance failed to discharge GST on premiums received from ‘Leaders’ in the co-insurance business and on commissions earned from ceded reinsurance premiums.Also Read: Insurance regulator approves two new players in India’s insurance marketHowever, New India Assurance pointed out that the issue pertains to industry-wide practices and believes it has a strong case to contest the demand. New India Assurance said it will initiate appropriate action and file a detailed response with the authorities within the prescribed timeline, highlighting its contentions. The company added that the order does not affect its financial or operational activities, as it follows CBIC guidelines and relates to a sector-wide matter.Shares of New India Assurance Company Ltd ended at ₹125.55, up by ₹0.90, or 0.72%, on the BSE.(Edited by : Jomy Jos Pullokaran)First Published: Mar 24, 2026 6:41 PM IST
