SBI Life Insurance Company Ltd. announced on Monday that it has received an Income Tax Order from the Faceless Assessment Unit of the Income Tax Department. The order pertains to Assessment Year 2023-24 and demands ₹352.50 crore in tax, along with ₹78.50 crore in interest. No penalty has been imposed.
According to a stock exchange filing, “…the Company has received an Income Tax Order from Faceless Assessment Unit, Income Tax Department on March 24, 2025 at 12.28 pm.”
The company attributed the tax demand to an incorrect increase in policyholder and shareholder income due to including allowable expenses and exemptions. The firm also noted that the tax calculation used a 30% corporate tax rate rather than the 12.5% special tax rate applicable to life insurance companies under Section 115B of the Income Tax Act, 1961.
SBI Life Insurance Company stated that the order is not expected to have a significant negative effect on its financial results. The company plans to challenge the demand by filing an appeal with the Appellate Authority within the set timeframe. “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,” the company said.
Shares of SBI Life Insurance Company Ltd. closed at ₹1,570.05, up ₹23.20, or 1.50%, on the BSE.
