LIC receives IT demand of Rs. 3528.75 crores

Life Insurance Corporation of India has received orders from Income Tax authorities regarding Income Tax demand issued by Assistant Commissioner of Income Tax, Mumbai. Corporation shall file an appeal before Commissioner (Appeals), Mumbai against the said orders within the prescribed timelines.

The corporation has received demand of Rs. 2133.67 crores for AY 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19 and 2019-20. 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 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.

The corporation has received demdand of Rs. 1,395.08 crores for AY 2015-16. The ITAT had directed the assessing officer to examine the factual matrix/ utilisation of surplus and decide in accordance with law with respect to issue of disallowance /addition on account of interim bonus made in the assessment order. On reconsideration, the Assessing Officer disallowed the same. and issued a demand notice for Rs. 1395.08 Crore.

There is no material impact on financials, operations or other activities of the Corporation due to the abovementioned orders.

Shares of Life Insurance Corporation Of India was last trading in BSE at Rs. 834.00 as compared to the previous close of Rs. 838.25. The total number of shares traded during the day was 65428 in over 2339 trades.

The stock hit an intraday high of Rs. 849.85 and intraday low of 832.00. The net turnover during the day was Rs. 54874580.00.

Source : Equity Bulls

Keywords

LIC LifeInsuranceCorporationofIndia INE0J1Y01017 ITDemand