Fortis Healthcare Limited has informed the Exchange regarding 'Income Tax Rectification order for the material subsidiary Fortis Hospitals Limited'.
FORTIS · price
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Awaiting price reaction for this filing.
Fortis Healthcare's material subsidiary Fortis Hospitals Limited had a tax demand of Rs. 89.53 Crores raised by the Income Tax department for Assessment Year 2022-23. The company has now received a Rectification Order under Section 154 read with Section 143(3) of the Income Tax Act, 1961, which rectified errors in the original order. As a result, the tax demand has been reduced to Rs. NIL. This follows an earlier stock exchange intimation dated March 22, 2024, regarding the original demand. The company has stated there is no impact on its financial or operational activities, though the full reversal of the Rs. 89.53 Crores demand is a clearly favorable outcome for the subsidiary.
Positive for shareholders — the complete reduction of the Rs. 89.53 Crores tax demand removes a significant contingent liability from the books of the material subsidiary, though the company has reported nil financial impact in its disclosure.