Shares of HDFC Life Insurance will be in focus on Wednesday after the company received an Income Tax order on March 23 from the Assistant Commissioner of Income Tax, Central Circle 6 (2), Mumbai. The shares closed 1.9% higher at ₹603 apiece on the NSE.
The order pertains to the period of FY 22-23, assessment year 2023-24, in which the company is required to pay tax of ₹126.46 crore with an interest of ₹45.5 crore. The demand was made for the following allegations made against the company.
The company classified Shareholders’ net investment income as ‘Income from life insurance business’ instead of ‘Income from other sources. Certain incomes should not be claimed as exempt under Section 10.
- The company claimed contribution from shareholders are incorrectly as a deduction while computing shareholders’ profits.
- Proportionate disallowance as per Section 14A, read with Rule 8D, not made.
- The company considered certain marketing and advertising expenses in financials as admissible expenses incorrectly while calculating the taxable surplus in the policyholder’s account.
Earlier this month, the company received a GST order for the period involved FY19-20, for a tax demand of ₹104 crore and Interest of ₹94 crore from the Assistant Commissioner of State Tax (INV-6), Investigation-A, Mumbai.
The company said that the order will not have any adverse impact on the financial operations of the company, and the same shall be contested by way of appeal before the Appellate Authority.
On consolidated basis, the company has reported marginal fall of 0.74% in its net profit at ₹418.19 crore for third quarter ended December 31, 2025 as compared to ₹421.31 crore for the same quarter in the previous year.
However, net premium income of the company increased by 9.03% at ₹18,351.42 crore for Q3FY26 as compared ₹16,831.84 crore for the corresponding quarter previous year. On a YTD basis and yearly, the shares of HDFC Life Insurance have delivered -19.5% and -17% respectively.
