Niva Bupa Health Insurance Company Limited has been served an Order cum Notice of Demand by the Income Tax Department, Central Circle, Mumbai. The demand for Assessment Year 2023-24 totals ₹28,37,45,380, which includes an interest component of ₹7,10,47,664. The additions primarily stem from disallowances related to marketing expenses and provisions for IBNR/IBNER claims. The company confirms the order is appealable and intends to pursue legal remedies.
Receipt of Significant Tax Order
Niva Bupa Health Insurance Company Limited announced the receipt of an Order cum Notice of Demand from the Assistant Commissioner of Income Tax, Central Circle 5(3), Mumbai, on March 14, 2026. The communication raises a tax demand concerning the Assessment Year 2023-24.
Financial Implications of the Demand
The total demand issued amounts to ₹28,37,45,380/-. This figure incorporates an interest charge amounting to ₹7,10,47,664/-. The company noted that the Assessing Officer made additions to the total taxable income based on adjustments related to specific items.
Basis for Tax Adjustments
The primary reasons cited by the tax authority for the demand are:
- Disallowance of certain Marketing and advertisement expenses classified as inadmissible under Section 37(1) of the Act.
- Disallowance of provisions made for claims Incurred But Not Reported (IBNR) and claims Incurred But Not Enough Reported (IBNER).
The company stated that these disallowances largely pertain to issues considered standard across the insurance industry.
Appeal Process and Financial Reporting
The management has confirmed that the Order is appealable. The company has resolved to exercise its right to appeal before the appropriate Appellate Authorities to contest the demand.
Furthermore, Niva Bupa confirmed that appropriate disclosures regarding this matter will be made in its forthcoming financial statements, in compliance with necessary guidelines. No penalties or sanctions, other than the assessed demand, were noted as being imposed at this stage.
Source: BSE
