IndiGo faces a penalty of KWD 448,793 (approx. ₹12.5 crore) from Kuwait's Income Tax Department for fiscal years 2021-25 over income tax demands. The airline plans to contest the order, deeming it erroneous, amid a series of global tax disputes testing its financial resilience.
Penalty Announcement
InterGlobe Aviation, IndiGo's parent, disclosed a fresh tax penalty from Kuwait's tax authorities totaling KWD 448,793 for FY 2021-25. This demand arises from income tax assessments in the Gulf market where IndiGo operates flights. The carrier views the order as flawed and intends to challenge it legally, echoing recent Indian GST penalties of ₹117.52 crore for ITC denial (2018-22).
Key Highlights
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Penalty Amount: KWD 448,793 (~₹12.5 crore at current rates), covering multi-year assessments.
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Scope: Income tax demand specifically from Kuwait operations spanning FY 2021-25.
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IndiGo's Stance: Order considered erroneous; strong merits backed by advisors, no material financial impact expected.
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Context: Follows ₹944 crore I-T penalty (AY 2021-22) and ₹117 crore GST fine, both under appeal.
Implications
This adds to IndiGo's tax battles but underscores robust cash flows amid 60%+ domestic market share. Shares dipped marginally post-disclosure.
Sources: NDTV Profit, Economic Times, TaxScan, Moneycontrol.