SBI Life Insurance Company Ltd has received an Income Tax Order from the Faceless Assessment Unit for the Assessment Year 2023-24 (FY 2022-23), raising a tax demand of ₹352.50 crore along with ₹78.50 crore in interest. The company has stated that it will contest the demand through an appeal.
On March 24, 2025, at 12:28 pm, SBI Life received an Income Tax Order from the Faceless Assessment Unit of the Income Tax Department. The demand includes ₹352.50 crore in tax and ₹78.50 crore in interest, with no penalty imposed.
The company attributed the demand to an incorrect enhancement of policyholder and shareholder income, arising from the addition of allowable expenses and exemptions. Additionally, it stated that the assessment applied a 30% corporate tax rate instead of the 12.5% special tax rate for life insurance companies under Section 115B of the Income Tax Act, 1961.
SBI Life Insurance has emphasised that the tax order will not have any material adverse impact on its financial operations. The company intends to challenge the demand by filing an appeal before the Appellate Authority within the stipulated time frame.
“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,” SBI Life stated in its stock exchange filing.
As of March 25, 2025, at 9:35 AM, SBI Life Insurance share price is trading at ₹1,565.70 per share, reflecting a decline of 0.26% from the previous day’s closing price. Over the past month, the stock has registered a profit of 6.38%.
SBI Life Insurance is confident that the tax order is based on incorrect calculations and intends to seek redress through the legal process. Despite the substantial demand, the company has assured stakeholders that its financial stability remains unaffected.
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Published on: Mar 25, 2025, 2:45 PM IST
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