LIC slapped with two I-T demand notices amounting to Rs 3,529 crore

Life Insurance Corporation of India has been slapped with two tax notices amounting to Rs 3,529 crore by the Assistant Commissioner of Income Tax, Mumbai. The insurer said that it will file an appeal against the tax notices with the Commissioner (Appeals), Mumbai within the prescribed timelines. 

In an exchange filing, the insurer clarified that there is no material impact on financials, operations or other activities of the corporation due to these orders.

The insurer said that the Income Tax Department had issued an intimation for a refund of Rs 25,464.46 crore for the Assessment Years 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19 and 2019-20. “The ITAT had directed the assessing officer to examine the factual matrix/utilisation of surplus and decide in accordance with law with respect to the issue of disallowance/addition on account of interim bonus made in the assessment order. On reconsideration, the Assessing Officer disallowed the same. Tax effect of such disallowance comes to Rs 2,133.67 crore,” it said. 

LIC further stated that for AY 2015-16, ITAT had “directed the assessing officer to examine the factual matrix/utilisation of surplus and decide in accordance with law with respect to the issue of disallowance/addition on account of interim bonus made in the assessment order. On reconsideration, the Assessing Officer disallowed the same and issued a demand notice for Rs 1,395.08 crore”.

Shares of Life Insurance Corporation of India were seen trading with 0.42 per cent cuts in pre-opening trade today. In contrast, domestic benchmarks are likely to extend their gains.

Also read: LIC records strong premium growth in December, up by 93.80%