Tax Demand Withdrawn

Fortis Healthcare Ltd has officially announced the complete withdrawal of a tax demand amounting to ₹89.53 crore that was previously raised against its subsidiary, Fortis Hospitals Limited. This announcement was made to the stock exchanges on May 5, 2025, following a rectification order from the Income Tax Department.

Details of the Tax Assessment

The demand was associated with the assessment year 2022-23 and had included an interest component of ₹9.54 crore. The original notice was issued on March 21, 2024, prompting subsequent actions and appeals from the company.

Rectification Order

In a regulatory filing made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Fortis Healthcare stated, “In continuation to our earlier intimation dated March 22, 2024, we hereby inform that the Rectification Order u/s 154 r.w.s. 143(3) has reduced the demand from ₹89.53 crore to nil.” This revised order reflects the rectification of errors identified in the initial assessment.

Impact on the Company

The withdrawal of this tax demand is a significant development for Fortis Healthcare, alleviating potential financial burdens associated with the initial assessment. This outcome underscores the importance of ongoing dialogue and rectification processes with tax authorities, enhancing the company’s operational stability.