SBI Life Insurance Company Ltd. has been hit with an income tax penalty of ₹23.80 crore, according to an order from the Income Tax Department. The penalty, issued under Section 270A, pertains to the Assessment Year 2018-19.
In a regulatory filing on Wednesday, SBI Life Insurance said that it received the order from the Assessment Unit of the Income Tax Department. The company confirmed that the order was received on March 26, 2025, at 1:23 AM. Despite the penalty, the company maintains that the order will not have any significant adverse effect on its financial operations. SBI Life intends to contest the penalty through an appeal before the appellate authority.
The company’s statement clarified that the tax demand and interest for the period are nil. The penalty stems from the tax authority’s alleged incorrect addition of allowable expenses under the Income Tax Act of 1961. The company plans to file a rectification request and an appeal to challenge the penalty.
Shares of SBI Life Insurance Company Ltd. closed at ₹1,548.15, experiencing a decrease of ₹8.25, equivalent to 0.53%, on the BSE.
