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

Life Insurance Corporation of India receives Rs 7099.97 Crore demand order (including Rs 6146.71 Crore income tax and Rs 953.25 Crore interest), planning to challenge.

Company Feels Order is Appealable Before CIT(A)

Saloni Kumari

Mar 26, 2026

Last update on Mar 26, 2026

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

Particulars	Details
Company's Name	Life Insurance Corporation of India
Issuing Authority	Assessment Unit, Income Tax Department
Assessment Year	2022-23
Demand Raised	Rs 7,099.97 Crore demand (including Rs 6,146.71 Crore income tax and Rs 953.25 Crore interest)
Date of Receipt of Order	25-Mar-26
Impact on Financial, Operational and Other Activities	No Material Impact

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Saloni Kumari

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Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].