The Notice for an income tax penalty of more than Rs 84 Crore was received by Life Insurance Corporation of India (LIC), the company said on Tuesday. It stated that although the notices for the assessment years 2012–13, 2018–19, and 2019–20 were issued on September 29, they were only received on October 3 by the recipients.

Details on LIC receives a Rs. 84 crore income tax penalty notice

This is to inform you that the Corporation has received an order from the Income Tax Authority under sections 271(1)(c) and 270A of the Income Tax Act, 1961, issued on September 29, 2023, which came to our knowledge on October 3, 2023. This is in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it said.

The insurer declared that they would challenge the order before the proper appellate body within the required time frames.

The insurance was fined more than Rs 12.61 crore in 2012–13, more than Rs 33.82 crore in 2018–19, and more than Rs 37.58 crore in 2019–20, for a total of more than Rs 84 crore.

The fines related to income from government-provided capital that was not regarded as taxable income and deductions under Section 80G used in calculating income under Section 44, read in conjunction with Rule 2 of the First Schedule to the Income Tax Act of 1961.

Prior to this, on September 27, the Directorate General of GST Intelligence (DGGI) sent ICICI Lombard a show-cause notice over a tax claim of Rs 17,28,86,10,803 (more than Rs 1,728 crore). The company stated in a filing that the show cause notice related 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”.

On September 29, the DGGI sent a show-cause cum demand notice to Bajaj Allianz General Insurance Company over a tax claim of roughly Rs 1,010.06 crore.

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