SBI Life Insurance has received a rectification order from the Income Tax Authority for the FY 2021-2022 assessment, significantly reducing a previously intimated tax demand. The initial demand of ₹5,317.18 Crore has been revised down to a total of ₹470.88 Crore following the company’s application under Section 154. The company confirms that it has already appealed the original order but will submit this new rectification order to the appellate authority.
Rectification Order Received for Prior Tax Demand
SBI Life Insurance Company Limited announced receiving a rectification order from the Deputy Commissioner of Income Tax, Mumbai, on March 04, 2026. This communication pertains to the company’s earlier disclosure made on March 30, 2024, regarding an Income Tax Order concerning the F.Y. 2021-2022 assessment.
The company had previously filed a rectification application under Section 154 of the Income Tax Act, 1961, arguing that the original assessment order contained wrong computations of Tax and applicable interest.
Revision of Financial Implications
The receipt of this rectification order results in a massive reduction in the confirmed tax liability compared to the original demand. The details are summarized below:
Original Intimated Demand (as of March 30, 2024)
- Tax Amount: Rs. 4,286.63 Crore
- Interest: Rs. 1,030.55 Crore
- Total Amount: Rs. 5,317.18 Crore
Updated Demand Post-Rectification Order
The order from the Tax authority confirmed the reduction in the demand:
- Tax Amount: Rs. 315.84 crore
- Interest: Rs. 155.04 crore
- Total Amount: Rs. 470.88 crore
The communication confirmed that no penalty (Rs. NIL) was imposed in either the original or the rectified order. The current total confirmed liability stands at Rs. 470.88 crore.
Ongoing Legal Action
It is noted that the company has already filed an appeal before the Commissioner Appeals against the original order within the stipulated timeline. The company has confirmed that it will submit the details of this new rectification order before the appellate authority. Furthermore, the grounds of appeal filed in the original appeal will remain in force, despite the deletion of the erroneous demand pursuant to the rectification order.
Source: BSE
