Care Health Insurance Limited (CHIL), a material subsidiary of Religare Enterprises Limited, has successfully secured a Rectification Order from income tax authorities for the Assessment Year 2023-24. The order addresses and corrects a technical computation error, leading to a significant reduction in the company’s net tax liability from Rs. 89.02 Crore to Rs. 45.16 Crore.
Significant Reduction in Tax Liability
Religare Enterprises Limited has announced that its material subsidiary, Care Health Insurance Limited (CHIL), received a favorable Rectification Order dated April 28, 2026. The order was issued under Section 154 of the Income-tax Act, 1961, following an application filed by the subsidiary to address a technical error found in their previous tax demand for the Assessment Year 2023-24.
Financial Impact
The successful rectification of the technical error has resulted in a major positive adjustment to the subsidiary’s financial obligations. The net tax liability has been effectively reduced from Rs. 89.02 Crore to Rs. 45.16 Crore, providing substantial relief to the entity.
Ongoing Legal Proceedings
While this rectification addresses the specific computation error, the company clarified that an appeal against the initial assessment additions for AY 2023-24 remains active. CHIL continues to defend its interests regarding these additions, and the appeal is currently pending for final adjudication and disposal. The financials for CHIL remain fully consolidated within Religare Enterprises Limited.
Source: BSE
