LIC receives notification for tax refund of Rs 25,464 crore for 7 AYs

Mumbai, Jan 13 2024 | 11:01 AM IST

The insurer noted that it will file an appeal with the before Commissioner (Appeals) against all the tax notices 

The state-owned Life Insurance Corporation of India (LIC) received a notification for a tax refund worth Rs 25,464 crore from the Income Tax Department for 7 Assessment Years (AYs) from 2012-13 to 2019-20 except for 2015-16. This is related to the interim bonus paid to policyholders during the assessment period.

On Thursday, LIC reported to have got a tax demand for Rs 2133.67 crore for the seven years AYs and Rs 1395.08 crore for AY 2015-16.

In all these 7 AYs, Income Tax Appellate Tribunal (ITAT) had directed the tax department to reconsider the issue of interim bonus and the department has disallowed the same. The tax effect of the same is around Rs 2133 crore.

“Pursuant to issuance of order giving effect of order of ITAT, 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 the 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. 2133.67 Crore,” according to the exchange filing.

Further, on Friday, the life insurer received a tax notice for Rs 1,370.60 crore pertaining to the AY 2011-12.

The insurer noted that it will file an appeal with the before Commissioner (Appeals) against all the tax notices while also adding that the notices will not have any material impact on the financials, operations or other activities of the corporation.

[The Business Standard]