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LIC receives another Income Tax demand notice worth Rs 1,370.60 crore

Life Insurance Corporation (LIC) of India has been slapped with a tax notice amounting to Rs 1,370.60 crore by the Assistant Commissioner of Income Tax, Mumbai.

The insurer said that it will file an appeal against the tax notices with the Commissioner (Appeals), Mumbai, within the prescribed timelines.

In an exchange filing on Friday, the insurer clarified that there is no material impact on financials, operations, or other activities of the corporation due to these orders.

The insurer said that the Income Tax Department had issued an intimation for a refund of Rs 1,370.60 crore for the assessment years 2011–12. “The Income Tax Appellate Tribunal [ITAT] had directed the assessing officer to examine the factual matrix or utilisation of surplus and decide in accordance with law with respect to the issue of disallowance or 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. 1370.60 crore,” it said.

Earlier on Thursday, the state-owned life insurer received demand notices for Rs 3,528.75 crore from the Assistant Commissioner of Income Tax, Mumbai.

On January 2, LIC received a GST notice of Rs 806.3 crore from the Maharashtra deputy commissioner of state tax for various compliance-related shortcomings in FY 2017-18. The demand notice includes Rs 365.02 crore of GST dues, Rs 404.7 crore of penalty, and an interest payment of Rs 36.5 crore.

At 5 pm, the shares of LIC were trading 0.56 per cent lower at Rs 829.35 on BSE.

Source from: https://www.business-standard.com/companies/news/lic-receives-another-income-tax-demand-notice-worth-rs-1-370-60-crore-124011200594_1.html

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