New Delhi, March 25 (IANS) Life Insurance Corporation of India (LIC) on Wednesday said that it has received a massive tax demand from the Income Tax Department for the financial year 2021–22.
In its disclosure in a regulatory filing, LIC said the Assessment Unit of the tax department has raised a demand of Rs 61,46,71,18,015 as income tax, along with an additional interest amount of Rs 9,53,25,87,935.
The insurer clarified that it plans to challenge this order and will file an appeal before the Commissioner of Income Tax (Appeals) through the legal process available.
The tax demand has arisen due to several adjustments made by the tax authorities during the assessment.
These include treating interim bonuses as income, adding losses from the Jeevan Suraksha Fund as income, and considering negative reserves as income.
The department has also disallowed certain deductions claimed by LIC under Section 80M, along with interest expenses linked to delays in depositing tax deducted at source (TDS).
Despite the large amount involved, LIC stated that the order will not have any material impact on its overall operations or business activities.
The financial implication, it said, is limited to the tax and interest amounts mentioned in the demand.
The disclosure was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which requires listed companies to inform stock exchanges about significant developments.
LIC also confirmed that the information has been shared with stock exchanges and uploaded on its official website.
Following the update, LIC’s shares closed higher on the market. On the NSE, the stock ended at Rs 779.60, gaining Rs 20.90 or 2.75 per cent, while another recorded closing price showed it at Rs 781.10, up Rs 22.40 or 2.95 per cent.
--IANS
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