'It is to inform that the Life Insurance Corporation of India has received the demand notice from Income Tax authorities.'.
LICI · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 2.1 pts less than Nifty Midcap 150 and 1.8 pts less than its Life Insurance peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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LIC has received a demand order from the Income Tax Department for assessment year related to F.Y. 2023-24. The total demand is approximately ₹10,331 crores, comprising Income Tax of ₹8,576.81 crores and interest of ₹1,754.45 crores. The disallowances relate to (a) addition of interim bonus as income, (b) addition of negative reserve as income, and (c) disallowance of deduction under Section 80M of the Income Tax Act. LIC has stated that it will file an appeal before the Commissioner of Income Tax (Appeals) as the order is appealable. The company has clarified there is no material impact on its operations or other activities.
While the demand amount is large, LIC plans to appeal the order and has stated no material impact on operations. The financial impact remains contingent on the appeal outcome, which may take considerable time, and investors should monitor the appellate proceedings for any adverse ruling.