New India Assurance Company Ltd, a state-owned general insurer, has received a favorable ruling from the Income Tax Department
The New India Assurance Company Ltd, a state-owned general insurer, has received a favorable ruling from the Income Tax Department, entitling it to a tax refund of ₹1,945.08 crore for assessment years 2013-14 to 2019-20. The refund includes ₹489.22 crore as interest.
Key Highlights:
- Favorable Tax Ruling:
The refunds result from appeals made to the Commissioner of Income Tax (Appeals), covering multiple assessment years.
The company is actively engaging with tax authorities to expedite the release of these funds.
- Impact on Financial Performance:
Q2 FY25 Performance:
Net profit: ₹71 crore, a significant recovery from a ₹200 crore net loss in the same quarter last year.
Total income: ₹10,090 crore, up from ₹9,839 crore in Q2 FY24.
Gross written premium: ₹9,620 crore, up from ₹9,397 crore year-on-year.
Net premium collection: Increased to ₹8,067 crore, compared to ₹7,894 crore in the year-ago period.
Total expenditure during the quarter reduced to ₹10,577 crore, a slight decline from ₹10,628 crore in the same period last year.
Strategic Importance:
This tax refund will bolster the company’s financial health and liquidity.
The ruling reflects the success of its legal and tax compliance strategies.
The New India Assurance Company is focusing on stabilizing its operations, as evidenced by its improved financial performance and proactive efforts to secure the tax refund promptly.
