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SBI Life Insurance Company stated that it has received an Income Tax Order from the Income Tax Department’s Faceless Assessment Unit for Assessment Year 2023-24 (FY 2022-23). The authority demanded ₹352.20 Crore in tax and ₹78.50 Crore in interest, no penalty being imposed.

The company informed the bourses that the tax demand was due to an erroneous enhancement of policyholder and shareholder income on account of allowable expenses and exemptions.

The company also pointed out that the tax calculation made by authorities is based on a 30% corporate tax rate in place of the 12.5% special tax rate applicable to life insurance companies under the section 115B of the Income Tax Act, 1961.

The Life insurance business noted that the order will have no material impact on its financial operations and confirmed that it will file an appeal against the demand before the Appellate Authority within the specified period.

The company stated, “the stated Income Tax Order will have no adverse material impact on company’s financial operations and also established that the same shall be contested by the company through an appeal before the Appellate Authority as per the applicable provisions of the Income Tax, 1961.”