SBI Life Insurance Receives Income Tax Assessment Order Raising Rs 537.75 Crore Demand

The SBI Life Insurance Company Limited has informed the stock exchanges regarding an income tax assessment order received from the Faceless Assessment Unit of the Income Tax Department. The order raises the tax demand of Rs 537.75 crore for the financial year 2023-24.

Background of the Case

The Income Tax Department has raised a demand of Rs 537.75 crore, including tax of Rs 441.24 crore and interest of Rs 96.51 crore.

However, SBI Life, in its regulatory filing to the stock exchanges, claimed that the income tax department has wrongly increased the income by disallowing the exemption under Section 10(15) and Section 10(23AAB) and by charging income under Section 56 of the Income Tax Act.

The company further stated that the demand is calculated based on the corporate tax of 30% instead of the applicable tax rate prescribed under Section 115B.

Key Detail of the Order

Company’s Further Step

Since the order is appealable, the company said that it will file an appeal before the appellate authority to challenge this assessment order under the relevant provisions of the Income Tax Act, 1961.

Financial Impact

SBI Life has clearly said that the order does not affect the financial operations of the company.

Regulatory Disclosure Compliance

The company has made this disclosure to the BSE and NSE under Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.