NewsReligare Enterprises' Subsidiary Care Health Insurance Gets Tax Liability Reduced to Rs. 45.16 Crore via Rectification OrderReligare Enterprises' Subsidiary Care Health Insurance Gets Tax Liability Reduced to Rs. 45.16 Crore via Rectification Order
Religare Enterprises disclosed that its material subsidiary, Care Health Insurance Limited (CHIL), received a Rectification Order dated April 28, 2026, under Section 154 of the Income Tax Act, 1961, from the Office of the Deputy Commissioner of Income-Tax, Central Circle 6(2) Mumbai. The order corrects a technical error in tax computation for Assessment Year 2023-24, reducing CHIL's net tax liability from Rs. 89.02 Crore to Rs. 45.16 Crore, with no penalty or restriction imposed. An appeal against the original assessment order remains pending, and CHIL's financials are consolidated with Religare Enterprises Limited.
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Religare Enterprises Limited has disclosed that its material subsidiary, Care Health Insurance Limited (CHIL), has received a Rectification Order dated April 28, 2026, under Section 154 of the Income Tax Act, 1961. The order, issued by the Office of the Deputy Commissioner of Income-Tax, Central Circle 6(2) Mumbai, corrects a technical error in the tax computation pertaining to Assessment Year 2023-24. CHIL received the communication from the authority on May 04, 2026, and the disclosure was made to stock exchanges on May 07, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Tax Liability Significantly Reduced
The rectification order marks a meaningful reduction in CHIL's tax liability following the correction of a computational error identified in the previous demand order. The authority upheld CHIL's rectification application and corrected the technical error in computation, consequently rectifying the original demand. The key financial impact of the rectification is summarised below:
| Parameter: | Details |
|---|---|
| Assessment Year: | 2023-24 |
| Previous Net Tax Liability: | Rs. 89.02 Crore |
| Revised Net Tax Liability: | Rs. 45.16 Crore |
| Type of Order: | Rectification Order under Section 154, Income Tax Act, 1961 |
| Date of Order: | April 28, 2026 |
| Date of Receipt by CHIL: | May 04, 2026 |
| Issuing Authority: | Office of the Deputy Commissioner of Income-Tax, Central Circle 6(2) Mumbai |
| Penalty/Restriction Imposed: | Nil |
Background and Regulatory Context
This development is a continuation of Religare Enterprises' earlier disclosure dated March 18, 2026, which pertained to the initial tax demand raised against CHIL for Assessment Year 2023-24. Following that demand, CHIL filed an application for rectification of the mistake apparent from records. Upon verification, the income tax authority accepted CHIL's application and issued the rectification order, reducing the net tax liability from Rs. 89.02 Crore to Rs. 45.16 Crore.
It is important to note that no violation or contravention has been alleged in connection with this order, as the rectification solely addresses a technical error in tax computation. No penalty, restriction, or sanction has been imposed pursuant to this communication.
Appeal Pending; Financials Consolidated with REL
While the rectification order reduces the immediate tax liability, CHIL had previously filed an appeal against the additions made in the original assessment order for Assessment Year 2023-24 with the appropriate authority within the stipulated timelines. The appeal remains pending for adjudication and disposal, and CHIL continues to defend its interest in the matter.
The income tax demand, if required to be paid, is payable by CHIL. The financials of CHIL are consolidated with Religare Enterprises Limited. The disclosure was signed by Anuj Jain, Company Secretary & Compliance Officer of Religare Enterprises Limited.
Historical Stock Returns for Religare Enterprises
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.23% | +0.61% | -0.21% | -13.67% | +5.29% | +122.89% |
How might the outcome of CHIL's pending appeal against the original assessment order further impact Religare Enterprises' consolidated financials beyond the current rectified liability of Rs. 45.16 Crore?
Could this tax rectification signal broader scrutiny of health insurance companies' tax computations by Indian income tax authorities, and how might peers like Star Health or Niva Bupa be affected?
What provisions, if any, has Religare Enterprises already made in its consolidated balance sheet for CHIL's tax liability, and will the reduction necessitate a reversal of excess provisions in upcoming quarterly results?
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