The Income Tax Department has issued a tax demand notice amounting to Rs 104.77 crore to Care Health Insurance, a division of Religare Enterprises, for the assessment years 2020–21 and 2021–22. The notice was sent by the Office of the Assistant Commissioner of Income-Tax, Central Circle 6(2), Mumbai, as per a regulatory filing by Religare Enterprises Limited (REL).

1. Care Health Insurance’s Financial Responsibility
The filing clarified that the financial accounts of Care Health Insurance are integrated within the company’s overall financial structure. As a result, the responsibility for fulfilling any tax obligations lies with the insurance firm itself.

2. Company’s Response to the Demand Notice
Care Health Insurance has decided to challenge the tax demand through the proper legal channels. The company, after consulting its tax advisors, intends to file an appeal within the stipulated time frame. Organizations facing substantial tax liabilities often engage in a structured process to address such demands. This typically involves submitting a formal response and seeking necessary clarifications after conducting an internal review and ensuring regulatory compliance.

3. Legal Avenues for Contesting the Tax Demand
Companies that believe a tax demand is unjust have multiple options for legal recourse. If the demand lacks justification, they can file an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] . If the appeal is rejected, the matter can be further escalated to the  Income Tax Appellate Tribunal (ITAT). In cases involving  transfer pricing or foreign taxation disputes, firms can also approach the  Dispute Resolution Panel (DRP).

4. Potential Strategies for Resolution
Care Health Insurance is likely to employ financial and legal strategies to either contest the demand or negotiate for a reduced liability. The company's next steps—whether opting for a legal battle or settlement—will depend on the strength of their case and the supporting documentation. The final resolution will be determined by the merits of their arguments and the regulatory framework governing corporate taxation.