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SBI Life Insurance received a tax demand of ₹352.50 crore for FY 2022-23 from the Income Tax Department. The company plans to appeal, citing erroneous income calculations and incorrect tax rate application. SBI Life Insurance share price remains unaffected.
SBI Life Insurance Company Ltd has received an Income Tax Order from the Faceless Assessment Unit of the Income Tax Department, demanding ₹352.50 crore as tax and ₹78.50 crore as interest for the Assessment Year 2023-24 (FY 2022-23). The tax order, issued on March 24, 2025, cites an erroneous enhancement of both policyholder and shareholder income due to the addition of allowable expenses and exemptions. The calculation applied a 30% corporate tax rate instead of the 12.5% special tax rate under Section 115B of the Income Tax Act, 1961, applicable to life insurance companies.
SBI Life Insurance stated that the order would not materially impact its financial operations and confirmed that it would challenge the demand through an appeal before the Appellate Authority within the permissible period. Despite the announcement, the SBI Life Insurance share price remained stable, reflecting confidence among investors.
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SBI Life Insurance received an Income Tax Order demanding ₹352.50 crore.
Interest amounting to ₹78.50 crore was also demanded, but no penalty imposed.
Tax calculation error cited a 30% corporate rate instead of the 12.5% applicable rate.
The company plans to contest the order by filing an appeal.
SBI Life Insurance share price remained stable amid the news.
Also read: Central Bank of India opens QIP at ₹42.62; shares gain 3.77%
SBI Life Insurance clarified that the tax demand would not have a significant adverse impact on its financial operations. The erroneous calculation of income and application of an incorrect corporate tax rate have prompted the company to plan an appeal before the Appellate Authority. The SBI Life Insurance share price remained unaffected on the stock exchange, reflecting continued investor confidence.
Metric | Value |
Tax Demand | ₹352.50 crore |
Interest Demand | ₹78.50 crore |
Total Amount Payable | ₹431.00 crore |
Applicable Tax Rate (Life Insurance) | 12.5% |
Erroneous Tax Rate Applied | 30% |
SBI Life Insurance Share Price | Stable |
The tax demand received by SBI Life Insurance highlights potential inconsistencies in calculating tax rates and allowable expenses. Despite the hefty tax claim, the SBI Life Insurance share price remains stable, indicating that investors are confident in the company’s stance and its intention to contest the demand. As the appeal progresses, the market will closely watch further developments.
Also read: DGTR Recommends Anti-Dumping Duty on Pretilachlor and Acetonitrile
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