LIC gets income tax penalty notice of over Rs 84 crore
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New Delhi: Life Insurance Corporation (LIC) on Tuesday said that it has received an income tax penalty notice of over Rs 84 crore, pertaining to three assessment years. The insurance corporation has decided to file an appeal against the order.
The notice, which pertains to assessment years 2012-13, 2018-19 and 2019-20, was issued by the Tax Department on September 29 but came to their notice on October 3.
“Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Corporation has received an order from the Income Tax Authority under section 271(1)(c) and 270A of the Income Tax Act, 1961 issued on 29th September 2023 which came to our knowledge on 03rd October 2023,” it said.
The tax authority has imposed a penalty of Rs 12.61 crore for the assessment year 2012-13, Rs 33.82 crore for 2018-19 and Rs 37.58 crore for 2019-20, amounting to over Rs 84 crore.
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The penalty has been imposed on state-owned insurer for violation of sections 271(1)(c) and 270A of the Income Tax Act, 1961, it said.
Incorporated in 1956 with an initial capital of Rs 5 crore, LIC has an asset base of Rs 45.50 lakh crore with a life fund of Rs 40.81 lakh crore as of March 31, 2023.
The penalties were pertaining to income from capital provided by the government that was not considered as taxable income, and deduction under Section 80G that were claimed while computing income under Section 44, read with rule 2 of First Schedule to the Income tax Act, 1961.
Earlier, ICICI Lombard received a show-cause notice from the Directorate General of GST Intelligence (DGGI) on September 27 over a tax demand of Rs 17,28,86,10,803 (over Rs 1,728 crore).
The show cause notice pertained to “non-payment of GST on the co-insurance premium accepted as follower in case of coinsurance transactions and non-payment of GST on reinsurance commission accepted on the reinsurance premium ceded to various Indian and foreign reinsurance companies during the period July 2017 to March 2022”, the company stated in a filing.
Bajaj Allianz General Insurance Company also received a show-cause cum demand notice from the DGGI on September 29 over a tax demand of around Rs 1,010.06 crore.
