SBI Life Insurance Company Ltd on Monday (March 24) said it has received an Income Tax Order from the Faceless Assessment Unit of the Income Tax Department for Assessment Year 2023-24 (FY 2022-23), demanding ₹352.50 crore in tax and ₹78.50 crore in interest, with no penalty imposed.
“…this is to inform that the Company has received an Income Tax Order from Faceless Assessment Unit, Income Tax Department on March 24, 2025 at 12.28 pm,” according to a stock exchange filing.
The company stated that the tax demand resulted from an erroneous enhancement of policyholder and shareholder income due to the addition of allowable expenses and exemptions.
It also pointed out that the tax calculation was based on a 30% corporate tax rate instead of the 12.5% special tax rate applicable to life insurance companies under Section 115B of the Income Tax Act, 1961.
SBI Life Insurance Company noted that the order will have no material adverse impact on its financial operations and confirmed that it will contest the demand by filing an appeal before the Appellate Authority within the specified period.
“The aforesaid Income Tax Order will have no adverse material impact on the financial operations of the company and the same shall be contested by the company by way of an appeal before the Appellate Authority in accordance with the applicable provisions under the Income Tax Act, 1961,” it said.
