Disclosure of material issue

New India Assurance (NIACL) has received an Income Tax penalty demand of Rs. 4.27 crore for Assessment Year 2017-18, levied under Section 270A of the Income Tax Act, 1961. This amount will be shown as a contingent liability in the company's financial statements.

NIACL plans to challenge the order by pursuing an appeal before the National Faceless Appeal Center (NFAC) or exploring other legal options.