IT dept serves Rs 124.98 cr demand notice on New India Assurance

The company was levied the penalty for disallowance of payment made to auto dealers for the assessment year 2016-17.

New Delhi: Public sector general insurer New India Assurance on Thursday said it has received a Rs 124.98 crore demand notice from the Income Tax Department.

The company received an order on March 19, 2025, from the National Faceless Assessment Centre, Income Tax Department, levying a penalty of Rs 1,24,98,58,050 for disallowance of payment made to auto dealers for the assessment year 2016-17, New India Assurance Company said in a regulatory filing.

The amount would be shown as a contingent liability in the financial statements of the company, it said.

Based on the merits of the matter, the company would pursue an appeal before the National Faceless Appeal Centre (NFAC) or other legal options against the order, it said.