SBI Life Insurance Company Ltd on Wednesday (March 4) said the Income Tax Department has reduced its tax demand for FY22 to ₹470.88 crore from ₹5,317.18 crore following a rectification order, and the company will submit the revised order before the appellate authority where its appeal is pending.
The insurer received the rectification order from the Deputy Commissioner of Income Tax, Circle 1(3)1, Mumbai. The order corrects what the company had described as an erroneous computation of tax and interest in the original assessment. As per the revised order, the tax amount stands at ₹315.84 crore and interest at ₹155.04 crore, with no penalty, taking the total demand to ₹470.88 crore.
In its earlier disclosure dated March 30, 2024, the company had reported a tax demand of ₹4,286.63 crore and interest of ₹1,030.55 crore, aggregating to ₹5,317.18 crore, with no penalty.
The company said it has already filed an appeal before the Commissioner (Appeals) against the original assessment order within the stipulated timeline and will place the rectification order before the appellate authority. The grounds raised in the original appeal will continue to remain in force after the reduction in demand. The communication pertains to FY 2021-22.
Third Quarter Results
SBI Life Insurance reported a nearly 5% year-on-year increase in net profit for the third quarter ended December 31, supported by stronger premium collections as tax cuts boosted retail demand for insurance products. The insurer’s net profit rose to ₹577 crore during the quarter, compared with ₹551 crore a year earlier.
SBI Life’s net premium income grew 22% year-on-year to ₹30,245 crore. One-time premium collections increased 24%, while renewal premiums from existing policies rose nearly 21%, reflecting sustained customer retention. However, the company’s expenses also rose sharply during the quarter. Management expenses climbed over 45% to ₹3,519 crore, driven by a 28% rise in commissions paid and a 36.6% increase in employee-related costs.
