BAJAJ BROKING
New India Assurance Company receives a significant tax refund of ₹1,945 crore for assessment years 2013-2020, bolstering its financial standing.
New India Assurance Company Ltd announced on Monday that it has received a favourable decision from the Income Tax Department, awarding it a substantial tax refund amounting to ₹1,945.08 crore for the assessment years 2013-14 through 2019-20. This decision comes after successful appeals to the Commissioner of Income Tax (Appeals), marking a significant financial reprieve for the company.
New India Assurance secures a ₹1,945.08 crore tax refund.
Refund includes ₹489.22 crore as interest.
Company engaging with tax authorities to expedite the refund process.
The tax refund includes ₹489.22 crore in interest, reflecting adjustments over several years following rulings in favour of the company. These rulings pertain to various orders passed by the Commissioner of Income Tax (Appeals) that have now been validated by subsequent orders from the Income Tax Department.
Also read: Zomato's ₹8,500 Crore QIP Starts; Floor Price ₹265
This financial boost comes at a critical time for New India Assurance, aligning with the company's reported net profit of ₹71 crore for the quarter ending September 2024. This is a significant turnaround compared to a net loss of ₹200 crore reported in the same period last year.
The company's total income for the recent quarter rose to ₹10,090 crore, up from ₹9,839 crore in the previous year, demonstrating a healthy growth trajectory. This increase is supported by a rise in the written gross premium, which reached ₹9,620 crore, up from ₹9,397 crore a year earlier.
Also read: LT Foods Opens New Riyadh Office, Targets $2 Billion Market
Here is a breakdown of New India Assurance's financial performance for the second quarter of the fiscal year:
Description | Q2 2024 (₹ Crore) | Q2 2023 (₹ Crore) |
Total Income | 10,090 | 9,839 |
Written Gross Premium | 9,620 | 9,397 |
Net Premium Collection | 8,067 | 7,894 |
Total Expenditure | 10,577 | 10,628 |
Net Profit/Loss | 71 | -200 |
Additionally, its net premium collection increased to ₹8,067 crore from ₹7,894 crore in the year-ago quarter, while total expenditure slightly decreased to ₹10,577 crore from ₹10,628 crore.
New India Assurance Company is currently engaging with tax authorities to ensure the swift release of the refund. This proactive engagement is expected to further stabilize the company’s financial position, allowing for enhanced operational flexibility and continued growth in its market sector.
The tax refund not only solidifies New India Assurance Company's balance sheet but also enhances its ability to pursue strategic growth initiatives in the upcoming periods. This event is likely to have a positive impact on the New India Assurance Company share price, reflecting increased investor confidence in the company's financial management and future prospects.
Also read: Cabinet Waives Bank Guarantees for Telcos, VodafoneIdea Benefits
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading