LIC gets income tax penalty notice of Rs 84 crore; to appeal against order

Life Insurance Corporation of India (LIC) said on Tuesday that it has received an income tax penalty notice of over Rs 84 crore. It said that the notices pertaining to assessment years 2012-13, 2018-19 and 2019-20 were issued on September 29 but came to their notice on October 3. 

“Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Corporation has received order from Income Tax Authority under section 271(1)(c) and 270A of the Income Tax Act, 1961 issued on 29th September 2023 which came to our knowledge on 03rd October, 2023,” it added. 

The insurer said that they will file an appeal before the appropriate appellate authority against the order within the prescribed timelines.  

The insurer has been penalised over Rs 12.61 crore for 2012-13, over Rs 33.82 crore for 2018-19, and Rs 37.58 crore for 2019-20, amounting to over Rs 84 crore. 

The penalties were pertaining to income from capital provided by the government that was not considered as taxable income, and deduction under Section 80G that were claimed while computing income under Section 44, read with rule 2 of First Schedule to the Income tax Act, 1961. 

Separately, before this, ICICI Lombard received a show cause notice from the Directorate General of GST Intelligence (DGGI) on September 27 over a tax demand of Rs 17,28,86,10,803 (over Rs 1,728 crore). The show cause notice pertained to “non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on reinsurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022”, the company stated in a filing.

Bajaj Allianz General Insurance Company also received a show-cause cum demand notice from the DGGI on September 29 over a tax demand of around Rs 1,010.06 crore. 

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