Religare Enterprises – Care Health Insurance Tax Liability Reduced to ₹45.16 Crore After Rectification Order

Expert Analysis:

• Religare Enterprises disclosed that its subsidiary, Care Health Insurance (CHIL), received a Rectification Order under Section 154 of the Income Tax Act, 1961, correcting a technical computation error related to Assessment Year 2023–24.

• Following the rectification, CHIL’s net tax liability has been reduced from ₹89.02 crore to ₹45.16 crore, significantly lowering the immediate financial impact on the insurer.

• The rectification order was issued by the Deputy Commissioner of Income-Tax, Central Circle 6(2), Mumbai, and no penalty, restriction, or regulatory sanction has been imposed.

• The revised order validates CHIL’s rectification application, indicating that the earlier demand involved a technical error in tax computation rather than compliance misconduct.

• Despite the reduction in liability, CHIL’s appeal against additions made in the original assessment order remains pending, meaning the final tax exposure could still change depending on adjudication outcomes.

• Since Care Health Insurance is a material subsidiary, the reduced liability is expected to provide relief to Religare Enterprises’ consolidated financial position and near-term cash flow visibility.