Fortis healthcare has informed stock exchanges about a significant income tax demand received by its wholly owned subsidiary, marking a material development that requires regulatory disclosure.

Tax Assessment Details

Fortis Hospitals Limited, the wholly owned subsidiary of Fortis Healthcare Limited, received an income tax assessment order for Assessment Year 2021-22. The order carries substantial financial implications for the healthcare group.

Company's Response Strategy

The subsidiary is actively reviewing the assessment order and considering multiple courses of action. Fortis Hospitals Limited is evaluating all available legal remedies to address the tax demand.

The company's planned response includes:

• Filing an appeal against the assessment order
• Submitting a rectification application
• Exploring other legal options available under income tax regulations

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations 2015. The company fulfilled its obligation to inform investors about material events that could impact its financial position.

Financial Implications

The tax demand of ₹149.12 crores represents a significant financial exposure for the subsidiary. The company has identified this amount as both the expected financial implication and the quantum of claims arising from the assessment order.

The healthcare major's disclosure emphasizes the material nature of this development, given the substantial amount involved and its potential impact on the group's financial position. The company's proactive approach in evaluating legal remedies demonstrates its commitment to protecting shareholder interests while ensuring compliance with tax regulations.

Fortis Healthcare has announced through an official regulatory disclosure that its wholly-owned subsidiary Fortis Hospitals Limited has received a substantial income tax demand from the authorities. The demand pertains to Assessment Year 2024-25 and amounts to ₹117.04 crore, representing a significant tax liability for the healthcare group.

Official Disclosure Details

The income tax order was issued on March 27, 2026, at 5:19 pm, with Fortis Healthcare making the mandatory disclosure under Regulation 30 of SEBI Listing Regulations on March 28, 2026. The assessment order was issued by the Income Tax Authority specifically targeting Fortis Hospitals Limited, which operates as a wholly-owned subsidiary of Fortis Healthcare Limited.

Regulatory Compliance and Documentation

Fortis Healthcare filed the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information in Annexure A, as required under the SEBI Master Circular, outlining the litigation details, opposing party information, and expected financial implications.

The disclosure was signed by Satyendra Chauhan, Company Secretary & Compliance Officer, ensuring proper regulatory compliance and transparency with stakeholders and regulatory authorities.

Company's Response Strategy

According to the official disclosure, Fortis Healthcare is evaluating all available options including filing an appeal and rectification application against the income tax order. This indicates that the company may contest the demand through appropriate legal channels if it believes the assessment is incorrect or excessive.

The healthcare company's approach suggests a thorough review of the demand notice to understand the basis for the tax calculation and identify potential grounds for challenging the order through established legal procedures.

Financial Impact Assessment

The ₹117.04 crore demand represents a substantial amount that could impact the subsidiary's financial position. The company has identified this amount as both the expected financial implication and quantum of claims in its regulatory disclosure.

The ultimate financial impact will depend on the outcome of any appeals process and whether the company can successfully challenge the demand or negotiate a resolution with the Income Tax Authority through appropriate legal procedures.