Intimation enclosed
Awaiting price reaction for this filing.
General Insurance Corporation of India (GIC Re) received an Assessment Order from the Income Tax Department under Section 143(3) read with 144C(3) of the Income-Tax Act, 1961, dated 16 May 2025, for Assessment Year 2022-23. A tax demand of Rs. 1,188.18 Crores has been raised, though the computation sheet inadvertently showed the demand as Rs. 0. The additions relate to Provision for Claims Incurred But Not Reported (IBNR), disallowance of amortization of premium on securities, and additional provision for doubtful debts. The Corporation plans to file an appeal before the National Faceless Appeal Centre (NFAC). Notably, the company states there is no material impact on its financials, operations, or other activities despite the large demand figure.
The demand is large on paper (over Rs. 1,188 Crores), but GIC Re has stated it will appeal and sees no material financial impact. However, until the appeal outcome, this remains an overhang and could create short-term volatility or negative sentiment in the stock, especially given the unusually large size of the tax claim relative to typical provisions.