SBI Life Insurance Faces ₹23.80 Crore Tax Penalty, Plans to Contest Order

SBI Life Insurance Company Ltd announced on Wednesday, March 26, that it has received an Income Tax Order under Section 270A from the Assessment Unit of the Income Tax Department, imposing a penalty of ₹23.80 crore for the Assessment Year 2018-19 (Financial Year 2017-18).

The company stated in a regulatory filing that the order was received on March 26, 2025, at 1:23 AM. However, it emphasised that the order would have no adverse material impact on its financial operations.

Reason for the Penalty

According to SBI Life, the penalty has been levied due to an alleged erroneous addition of allowable expenses under the Income Tax Act, of 1961.

Despite the imposition of the penalty, the company clarified that the tax demand and interest for the period stand at nil.

Company’s Response and Appeal Plan

SBI Life Insurance has stated that it strongly disagrees with the penalty and intends to contest it. The company plans to file a rectification request and appeal the order before the Appellate Authority.

While addressing concerns regarding its financial standing, SBI Life reassured stakeholders that the imposed penalty would not materially impact its financial operations. The company remains committed to resolving the matter through legal proceedings.

Stock Performance

On March 26, 2025, SBI Life share price ended 0.88% lower at ₹1,542.70. SBI Life’s share price reached a 52-week high of ₹1,935, and a 52-week low of ₹1,307.

As per BSE data, the total traded volume for the stock stood at 7,138 shares with a turnover of ₹1.10 crores.

Conclusion

SBI Life Insurance will challenge the ₹23.80 crore penalty under IT Section 270A, calling it unjustified due to disputed expense claims.

The company assures no material financial impact and plans to appeal. While complying with legal processes, SBI Life remains confident in its position and committed to safeguarding stakeholder interests.

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