Life Insurance Corporation of India (LIC) has received a significant communication regarding a demand order for Income Tax and Interest pertaining to the Financial Year 2023-24. The total demanded amount, including Income Tax of INR 85,76,81,60,095/- and Interest of INR 17,54,45,02,265/-, is substantial. The Corporation has stated that the order is appealable and it intends to file an appeal before the Commissioner of Income Tax (Appeals).
Receipt of Major Tax Communication
Life Insurance Corporation of India (LIC) formally announced on March 27, 2026, that it has received a communication pertaining to a demand order from the Assessment Unit of the Income Tax Department. This notice relates to the Financial Year 2023-24.
Details of the Financial Demand
The communication details a substantial demand covering two main components for FY 2023-24:
- Income Tax Demand: INR 85,76,81,60,095/-
- Interest Demand: INR 17,54,45,02,265/-
Alleged Contraventions
The assessment has resulted in disallowances made by the authority for the following key issues:
- Addition of Interim Bonus as Income.
- Addition of Negative Reserve as Income.
- Disallowance of Deduction under Section 80M.
Management Response and Impact Assessment
The Corporation has confirmed that the financial impact of this demand is quantified by the total Income Tax and Interest amounts specified above. Importantly, LIC has assessed that there will be no material impact on the day-to-day operations or other activities of the Corporation due to this order.
The order is appealable, and the management has stated its intent to file an appeal before the Commissioner of Income Tax (Appeals) against the assessment made by the Income Tax Department.
Source: BSE
