Tax Demand Notice: This company received a tax demand notice of ₹189 crore, keep an eye on the stock tomorrow:NIACL has clarified that it will file an appeal against this order through the National Faceless Appeal Centre (NFAC) or other legal options.

News Topical, Digital Desk : State-owned insurance company The New India Assurance Company Limited (NIACL) has received a significant tax demand notice from the Income Tax Department. The company has been issued a tax demand of ₹189.37 crore (₹1,89,37,08,470) for the assessment year 2023-24.

The company informed the exchange that this order has been passed by the Income Tax Department under section 143(3) of the Income Tax Act, which was received on March 23, 2026.

Why did the tax demand come?

According to the document (in the Annexure on page 2), this tax demand has arisen due to disallowance of certain expenses that were not accepted by the Income Tax Department.

The company's stance:

NIACL has clarified that it will appeal against this order through the National Faceless Appeal Centre (NFAC) or other legal options. The company also stated that this tax demand will be reflected as a "Contingent Liability" in its business statements.

Experts believe that although the amount is large, showing it as a potential liability in the appeal process and accounting may limit the immediate financial impact.