ICICI Prudential Life Insurance Company Limited on Friday, March 28, announced plans to appeal an income tax order issued by the Assistant Commissioner of Income Tax, Maharashtra. The order demands ₹328.42 crore in tax, interest, and penalty for the Assessment Year 2023-24.
The order, received on March 28, 2025, is based on several tax-related issues identified by the authorities, including:
– Treating the transfer from the shareholders’ account to the policyholders’ account as income.
– Disallowing exemptions under Section 10 of the Income Tax Act for specific incomes.
– Applying disallowance under Section 14A, read with Rule 8D, concerning exempt income.
– Taxing shareholders’ income as income from other sources.
– Disallowing certain marketing and advertising expenses while calculating the taxable surplus in the policyholders’ account.
The total demand comprises ₹265.49 crore in tax and ₹62.92 crore in interest. No penalty has been imposed. ICICI Prudential Life intends to challenge the order before the Commissioner (Appeals) within the stipulated timeframe.
The company said that the key issues raised in the assessment order have been previously addressed in rulings by courts, the Income Tax Appellate Tribunal, Mumbai, and the Commissioner of Income Tax (Appeals) in its own cases from earlier years.
