LIC receives Income Tax demand order of Rs 3,528 crore

New Delhi: Life Insurance Corporation of India has received orders for Rs 3,528 crore from Income Tax authorities regarding Income Tax demand issued by Assistant Commissioner of Income Tax, Mumbai.

"Corporation shall file an appeal before Commissioner (Appeals), Mumbai against the said orders within the prescribed timelines. There is no material impact on financials, operations or other activities of the Corporation due to the abovementioned orders," the LIC said.

Pursuant to issuance of order giving effect of order of ITAT, the Income Tax Department has issued intimation for a refund of Rs. 25,464.46 crore. The ITAT had directed the assessing officer to examine the factual matrix/utilisation of surplus and decide in accordance with law with respect to issue of disallowance/addition on account of interim bonus made in the assessment order.

On reconsideration, the Assessing Officer disallowed the same. Tax effect of such disallowance comes to Rs 2,133.67 crore. This pertains to AY 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19, and 2019-20.

The ITAT had directed the assessing officer to examine the factual matrix/utilisation of surplus and decide in accordance with law with respect to issue of disallowance/addition on account of interim bonus made in the assessment order. On reconsideration, the Assessing Officer disallowed the same. and issued a demand notice for Rs 1,395.08 crore. This pertains to AY 2015-16.