Insurtech company Go Digit has recently received a tax demand notice amounting to ₹384.4 Cr, inclusive of ₹100.4 Cr in interest, from the Income Tax department’s assessment unit for the assessment year 2023-24 (AY24). This demand is attributed to disallowances related to provisions for claims and non-deduction of TDS on certain expenses and reinsurance premiums.
Following this development, Go Digit intends to appeal with Appellate authorities or explore other legal avenues. The company stated that these disallowances are commonly faced by the industry and will be addressed accordingly.
This tax demand notice comes on the heels of a separate GST demand notice of ₹170 Cr that Go Digit received earlier for alleged short payment of taxes over a period of nearly five years. The company had also recently received a GST demand reaffirmation order from the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate.
These financial challenges highlight the complex regulatory environment that insurtech companies operate in and underscore the importance of thorough tax compliance measures within the industry.
Source: Inc42 Media