LIC: An announcement regarding a tax refund of Rs 25,464 crore for seven Assessment Years (AYs) from 2012–13 to 2019–20, with the exception of 2015–16, was sent by the Income Tax Department to the state-owned Life Insurance Corporation of India (LIC). In the course of the assessment period, policyholders received an interim bonus.
Tax demands of Rs 2133.67 crore for the seven years of the current fiscal year and Rs 1395.08 crore for the 2015–16 fiscal year were received by LIC on Thursday.
The tax agency has refused to reevaluate the interim bonus issue, despite the Income Tax Appellate Tribunal (ITAT)’s directive to do so for each of the past seven academic years. Around Rs 2133 crore is the tax impact of the same.
“Information for a refund of Rs. 25,464.46 crore has been issued by the Income Tax Department in response to the issuance of an order implementing the ITAT’s order. The assessing officer was instructed by the ITAT to review the factual matrix and the use of excess and make a legally-based decision about the disallowance or addition of money due to the interim bonus mentioned in the assessment order. After giving it another look, the Assessing Officer rejected the same. This disallowance has a tax consequence of Rs. 2133.67 crore, as stated in the exchange filing.
Furthermore, a tax notification for Rs 1,370.60 crore related to the AY 2011–12 was received by the life insurance on Friday. While stating that the notices will not materially affect the corporation’s finances, operations, or other activities, the insurance also stated that it will appeal each and every tax notice to the Commissioner (Appeals).
