GIC Re Faces Huge Tax Demand; A ₹1,188 Crore Challenge
The General Insurance Corporation of India (GIC Re) receives tax demand notice for assessment year 2022-23, plans to
By: : Kashish Singh
Update: 2025-05-18 17:00 GMT
GIC Re Faces Huge Tax Demand; A ₹1,188 Crore Challenge
The General Insurance Corporation of India (GIC Re) receives tax demand notice for assessment year 2022-23, plans to appeal
The Income Tax Department sends a ₹1,188.18 crore tax demand notice to the General Insurance Corporation of India (GIC Re) for the 2022–2023 assessment year. The notice was received on May 16, 2025, from the department's Assessment Unit and was given in accordance with Section 156 of the Income Tax Act, 1961. Moreover, the demand is driven by disallowances for claims incurred but not reported (IBNR), amortization of securities premiums, and provisioning for dubious debts.
According to GIC Re, its operations and financials will not be materially impacted by the substantial tax demand. The company has made it clear that it plans to contest the claim in court or by appealing to the National Faceless Appeal Centre (NFAC).
The tax demand notice emphasizes the Income Tax Department's continued monitoring of insurance businesses. The fact that GIC Re decided to challenge the demand reveals how complicated tax regulations are and how important it is to have clarity on matters like IBNR and securities premium amortization.
GIC Re's proactive approach to addressing the tax demand notification reflects its dedication to resolving the matter and minimizing any potential damage to its business operations.