LIC Faces Rs 7,099.97 Crore Income Tax Demand; Says No Material Impact on Operations

The Life Insurance Corporation of India has disclosed to the stock exchange that it has received an order passed by the Assessment Unit, Income Tax Department, raising income tax and interest amounting to Rs 6,146.71 crore and Rs 953.25 crore, respectively, resulting in the total demand of Rs 7,099.97 crore for the financial year 2021-22 (assessment year 2022-23).

The company had received the order on March 25, 2026. The imposed demand includes the addition of Interim Bonus as Income, Loss from the Jeevan Suraksha Fund as Income, Negative Reserve as Income and disallowance of Deduction under Section 80M and Interest on late deposit of TDS (Tax Deducted at Source).

The company claims that the financial impact of the imposed demand is limited to income tax and interest. Other than that, there is no material impact on the company’s operations or other activities of the corporation. The company believes the imposed demand is not justified and is liable to be challenged before the Commissioner of Income Tax (Appeals).

The company has made the aforementioned disclosure to the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) through a regulatory filing dated March 25, 2026, issued under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of Demand Order