Indian insurtech agency Go Digit Common Insurance coverage Restricted has obtained an revenue tax demand of Rs 3,844.3 crore for the 2023-24 evaluation yr, in line with a regulatory submitting.

The order was issued by the Workplace of the Assistant Commissioner of Revenue Tax, Central Circle 6(2), Mumbai, and was obtained by the corporate on 25 March 2026.

The demand contains curiosity of Rs 1,003.9 crore underneath Part 234B of the Revenue Tax Act, 1961. It follows an evaluation underneath Part 143(3), which resulted in a rise within the firm’s taxable revenue after a number of changes.

Causes for the demand

The tax authority cited a number of disallowances as the premise for the revised evaluation, together with:

• Provisions for claims “incurred however not reported” (IBNR) and “incurred however not sufficient reported” (IBNER)

• Non-deduction of tax deducted at supply (TDS) on sure bills underneath Part 40(a)(ia)

• Non-deduction of TDS on reinsurance premiums paid to non-resident insurers underneath Part 40(a)(i)

The corporate stated these points are “primarily industry-wide”.

Firm response

In its assertion, the insurer stated it’s reviewing the order and intends to problem it.

“The corporate will pursue an attraction with appellate authorities or consider different authorized choices towards the stated order,” it stated, including that it will assess whether or not any disclosures are required in its monetary statements.

It additionally famous that there’s “no impression at this stage” from penalties or compensation.

The most recent demand comes shortly after the corporate confronted scrutiny underneath items and providers tax (GST) guidelines.

The corporate just lately disclosed a re-affirmed GST demand of about Rs 154.8 crore, together with a penalty of roughly Rs 15.5 crore and relevant curiosity, taking the overall tax publicity in that matter to round Rs 170.3 crore; the case pertains to co-insurance premiums and reinsurance commissions.

The corporate has maintained that these issues, too, relate to broader {industry} practices and is evaluating authorized cures. Regardless of regulatory challenges, the insurer reported progress in its current quarterly outcomes. Internet revenue rose 18% year-on-year to Rs 140 crore within the third quarter of the 2025–26 monetary yr, whereas gross written premium elevated 9% to Rs 2,909.2 crore.

Complete revenue for the quarter stood at Rs 2,497.7 crore, with bills rising at a slower tempo.

The result of the attraction course of might decide whether or not the tax demand has any materials monetary impression sooner or later.