Max Financial Services Ltd (MFSL) said on Wednesday that it has settled a long-pending income tax case under the dispute resolution scheme Direct Tax Vivad Se Vishwas 2020 launched recently by the government.
The company has paid Rs 123.78 crore for settling the litigation involving capital gains from the stake sale of its erstwhile telecom joint venture Hutchison Max Telecom Ltd.
"MFSL is the first large private sector player in India to have settled and paid under the Vivad Se Vishwas Scheme. The settlement was finalised with the Pr.CIT-1, Jalandhar earlier this month and due taxes have been remitted," it said in a statement.
The payment also clears a tax dues contingent liability that has been reported on the company's books for the past two decades.
MFSL is listed on both NSE and BSE with a shareholding from Analjit Singh sponsor family and a set of marquee institutional investors such as KKR, New York Life, Baron, Vanguard, Blackrock and Aberdeen.
The Vivad Se Vishwas Scheme was announced during the Union Budget speech on February 1. Under this scheme, taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by June 30 and get a complete waiver of interest and penalty.
MFSL is the parent company of Max Life, India's largest non-bank, private life insurance company. MFSL actively manages a 72.5 per cent stake in Max Life Insurance Company Ltd, making it India's first listed company focused exclusively on life insurance.
( With inputs from ANI )