ICICI Prudential Life Insurance Company Limited announced receipt of an assessment order from the Assistant Commissioner of Income Tax for the Assessment Year 2024-25 on March 23, 2026. The order involves a total demand of approximately ₹3.91 billion, primarily comprising Income Tax and Interest, with no penalties levied. The company intends to challenge this order by filing an appeal before the Commissioner of Income Tax (Appeals) within the stipulated timelines.
Income Tax Assessment Order Received
ICICI Prudential Life Insurance Company Limited has formally notified the stock exchanges regarding the receipt of an order under Section 143(3) of the Income Tax Act, 1961. The communication was received from the Assistant Commissioner of Income Tax, Central Circle 6(2), Mumbai, on March 23, 2026, at 9:05 p.m. The order pertains to the Assessment Year 2024-25 (AY2024-25).
Key Contents of the Assessment Order
The material contents of the communication included several key adjustments made by the tax authority:
- Negative Reserves being considered as part of taxable surplus.
- Transfer from the shareholders’ account to the policyholders’ account being treated as income.
- Disallowance of certain exemptions under Section 10.
- Disallowance made under Section 14A read with Rule 8D in respect of exempt income.
- Shareholders’ income being taxed under the head ‘Income from other sources’.
Financial Implications and Demand Summary
The expected financial implications resulting from this assessment order are substantial. The total proposed demand, excluding any penalties, is summarized as follows:
- Income Tax Demand: ₹3,471,293,534
- Interest Demand: ₹439,545,379
- Penalty Demand: Nil
- Total Demand: ₹3,910,838,913
It is important to note that the company indicated no impact at this stage, as the basis for these issues was covered by favorable orders in previous assessment years by various appellate authorities.
Company’s Planned Course of Action
The management confirmed that it plans to take necessary action to contest the order. The Company shall file an appeal against the said order before the appropriate appellate authority within the prescribed due course. The Company further declared that the provided details are true, correct, and complete to the best of their knowledge and belief.
Source: BSE
