'It is to inform that the Life Insurance Corporation of India has received a demand order from Income Tax authorities.'.
LICI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
LIC has received a demand order from the Income Tax Department for Assessment Year FY 2021-22. The demand includes an Income Tax component of about ₹6,146.71 crore and an interest component of about ₹953.26 crore, taking the total to roughly ₹7,100 crore. The disallowances relate to additions of interim bonus, Jeevan Suraksha Fund loss, and negative reserve as income, along with disallowance of Section 80M deduction and interest on late TDS deposit. The order is appealable before the Commissioner of Income Tax (Appeals). LIC has stated that there is no material impact on its operations or other activities from this demand.
The demand size is sizeable but LIC plans to appeal, so the final cash outflow is uncertain. Near-term sentiment may be mildly negative, but since operations are unaffected and the company has strong financial buffers, the long-term impact is likely limited unless the appeal fails.