According to a regulatory report dated March 25, the Income Tax Department issued a demand order to the Life Insurance Corporation of India for the fiscal year 2021-22. This order includes tax and interest.

The Assessment Unit of the Income Tax Department has issued a demand for ₹6,146.71 crore in income tax and ₹953.25 crore in interest. This information is according to the insurer’s filing.

The corporation stated that the order is appealable to the Commissioner of Income Tax (Appeals). Therefore, it intends to fight the assessment using the available legal process.

According to the report, the tax demand stems from multiple disallowances and additions discovered by the tax office during the assessment procedure.

These include adding interim bonuses as income, adding losses from the Jeevan Suraksha Fund as revenue, and adding negative reserves as income. In addition, the tax administration has prohibited deductions claimed under Section 80M. It has also prohibited interest on late tax deposits deducted at source (TDS).

The insurer stated that the order’s financial impact is restricted to the income tax and interest amounts listed in the demand. However, it stated that there is no meaningful impact on the corporation’s business or other activities.

The statement was made according to Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and statement Requirements Regulations, 2015. This regulation requires listed entities to notify exchanges of material developments.

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