Updated Mar 25, 2026 21:17 IST
Life Insurance Corporation of India (LIC) has informed after the stock market closed on Wednesday that the company has received a tax notice of about Rs 7100 crore from the Income Tax Department for the financial year 2021–22 (FY22), which includes Rs 6146.71 crore income tax and Rs 953.26 crore interest.
Life Insurance Corporation of India (LIC) has informed after the stock market closed on Wednesday that the company has received a tax notice of about Rs 7100 crore from the Income Tax Department for the financial year 2021–22 (FY22), which includes Rs 6146.71 crore income tax and Rs 953.26 crore interest. In the information given to the exchange, the company said that this notice was issued on March 25. LIC has expressed disagreement with this order and said that it will challenge it in appeal. The company also says that this tax demand will not have any significant impact on its operations or other activities, due to which there is no possibility of any major change for the policyholders at present.
LIC said in its filing that the order is appealable and it plans to challenge it before the Commissioner of Income Tax (Appeals). According to the company, this tax demand has arisen due to several disallowances and additions made by the Income Tax Department during assessment. These include adding interim bonus to income, including Jeevan Suraksha Fund losses as income and treating negative reserves as income.
no effect on operation
Apart from this, the department has rejected the deduction taken under section 80M and has also not recognized the interest related to delay in depositing TDS (Tax Deducted at Source). LIC said that the financial impact of this order is limited only to the tax and interest demanded and it will not have any major impact on the operations or other activities of the company. In the quarter ended December, the company’s profit has increased by 17.46 percent to Rs 12,930.44 crore.
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Its net premium income increased by 17.76 per cent year-on-year to Rs 1.26 lakh crore in this quarter, compared to Rs 1.07 lakh crore in the December quarter of the 2024-25 financial year (Q3FY25). LIC shares closed at Rs 779.60 on Wednesday with a gain of 2.75 per cent. The company’s shares have seen a decline of 1.24 percent in the last one year.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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