Fortis Malar Gets ₹41 Lakh Refund After Tax Demand Dropped for AY 2024-25

Fortis Malar Hospitals has seen its Income Tax demand of ₹20.82 lakh for Assessment Year (AY) 2024-25 deleted. This resolution means the company is now set to receive a refund of ₹41.11 lakh. This positive development addresses a past obligation and strengthens the company's financial position, though vigilance regarding other tax matters remains important.

Key Event Details

Fortis Malar Hospitals announced it successfully processed a rectification application concerning an Income Tax demand. The Income Tax department has deleted the ₹20.82 lakh demand for Assessment Year 2024-25. As a result, a refund of ₹41.11 lakh has been determined for the company. This resolution is linked to a CPC Order dated March 26, 2026, with the event noted on March 27, 2026.

Financial Impact

Resolving this tax demand and receiving the refund will positively impact Fortis Malar Hospitals' finances. This alleviates a prior obligation and injects cash, thereby improving the company's overall financial position.

Company Background and Tax History

Fortis Malar Hospitals is a multi-speciality hospital operator that was formerly based in Chennai and is a subsidiary of Fortis Hospitals Limited. The company sold its business operations via slump sale on February 1, 2024, and subsequently ceased active business operations. In December 2025, the company disclosed it received an Income Tax intimation order demanding ₹20.82 lakh for AY 2024-25. Earlier, in March 2026, Fortis Malar had received a separate tax demand of ₹48.22 lakh for AY 2018-19, which it considered not maintainable and planned to appeal. The company has also reported favorable outcomes in GST matters, with notable reductions in potential demands.

Immediate Impact

The ₹20.82 lakh Income Tax demand for AY 2024-25 is no longer an outstanding liability. Fortis Malar is now set to receive a refund of ₹41.11 lakh from the Income Tax department. This resolution positively impacts the company's cash flow and provides greater clarity on its financial statements.

Ongoing Tax Matters

While this specific demand is resolved, other tax demands for different assessment years, such as the ₹48.22 lakh for AY 2018-19, may still be under appeal or subject to further proceedings.

Industry Context

Fortis Malar operates within India's healthcare sector, alongside major players such as Apollo Hospitals Enterprise Ltd. and Max Healthcare Institute Ltd. Its parent company, Fortis Healthcare Ltd., is a prominent entity in the market. Other significant industry peers include Narayana Hrudayalaya Ltd. and Aster DM Healthcare Ltd.

Key Figures

Income Tax Demand Deleted: ₹20.82 Lakh for AY 2024-25
Refund Determined: ₹41.11 Lakh for AY 2024-25

Looking Ahead

Investors will be watching for the timely receipt of the ₹41.11 lakh refund. Updates on other ongoing tax matters or appeals, such as the AY 2018-19 demand, will also be key.