The New India Assurance Company Limited has been served a Penalty Order by the Assessment Unit, Income Tax Department. The order mandates a payment of Rs. 4,27,30,843/- for Assessment Year 2017-18. The company plans to contest this order by filing an appeal. The financial impact will be reflected as a contingent liability in the company’s financial statements.
Income Tax Penalty Issued
The New India Assurance Company Limited has received a Penalty Order from the Assessment Unit of the Income Tax Department. This order relates to Assessment Year (AY) 2017-18 and imposes a demand of Rs. 4,27,30,843/-.
Company’s Response and Financial Impact
The company has indicated its intention to pursue an appeal against this order. The outcome of the appeal process will determine the final resolution. In the interim, the demand amount will be disclosed as a contingent liability in the company’s financial statements. The details of the action taken, including the penalty levied, are in accordance with Section 270A of the Income Tax Act, 1961.
Disclosure and Next Steps
This disclosure is made in compliance with regulatory requirements. The company is exploring all available legal options to address the penalty order and will provide further updates as the appeal process progresses. The communication was officially received on 11th June 2026.
Source: BSE
