## Go Digit Hit with ₹384 Crore Tax Demand, Cites 'Industry-Wide' Issues
Insurtech leader Go Digit is contesting a massive ₹384.4 crore tax demand from the Income Tax department for the 2023-24 assessment year. The notice includes a substantial ₹100.4 crore in interest, signaling a significant financial and regulatory challenge for the company. This demand arrives just weeks after the firm received a separate GST notice, intensifying scrutiny on its financial operations.

The core of the dispute centers on three key disallowances by tax authorities. These include the rejection of provisions for 'Incurred But Not Reported' (IBNR) and 'Incurred But Not Enough Reported' (IBNER) claims—common accounting practices in insurance. Additionally, the department disallowed expenses under Sections 40(a)(ia) and 40(a)(i) of the Income Tax Act, citing failures to deduct Tax Deducted at Source (TDS) on certain payments and on reinsurance premiums paid to non-resident insurers.

Go Digit has stated that these disallowances relate to 'industry-wide issues' and plans to file an appeal with appellate authorities. The company is also evaluating the need for disclosures in its financial statements. This back-to-back tax pressure places Go Digit's accounting methodologies and cross-border transactions under a harsh spotlight, testing its legal strategy and potentially setting a precedent for how tax authorities treat technical provisions across the burgeoning insurtech sector.
---
- **Source**: Inc42
- **Sector**: The Vault
- **Tags**: Tax Demand, Insurtech, Income Tax Department, Financial Compliance, Legal Dispute
- **Credibility**: unverified
- **Published**: 2026-03-26 14:39:15
- **ID**: 35628
- **URL**: https://whisperx.ai/en/intel/35628