Care Health Insurance, a subsidiary of Religare Enterprises Ltd (REL), has been issued a demand notice amounting to ₹104.77 crore by the Income Tax Department for the assessment years 2020-21 and 2021-22. This notice was sent from the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2) in Mumbai, as confirmed by REL in a regulatory filing on March 24, 2025. The company stated that its financials are consolidated with those of REL, meaning that any income tax liabilities arising from this demand will be the responsibility of Care Health Insurance. The demand notice indicates that the tax authorities have identified discrepancies or issues requiring further examination.

In light of this situation, Care Health Insurance has indicated that it will be appealing the order based on advice from its tax consultants. The company plans to file this appeal before an appropriate forum within the statutory timelines, demonstrating its commitment to contesting the demand.

This development comes at a time when the insurance sector is facing increased scrutiny from tax authorities. Care Health Insurance's proactive approach in addressing this demand is crucial for maintaining investor confidence and ensuring operational continuity. The outcome of the appeal will be closely watched by industry stakeholders, as it could set a precedent for how similar cases are handled in the future.

As Care Health Insurance navigates this challenge, it remains focused on its growth strategy and enhancing its service offerings in the health insurance market, aiming to continue providing valuable coverage to its customers while addressing regulatory obligations effectively.