LIC Receives Income Tax Demand Order
Life Insurance Corporation of India (LIC) announced today that it has received a communication/demand order for Income Tax and Interest. The order, received on March 25, 2026, pertains to the financial year 2021-22.The Income Tax demand totals INR 61,46,71,18,015, while the interest amount is INR 9,53,25,87,935. The Corporation stated that the order is appealable before the Commissioner of Income Tax (Appeals).
The tax demand stems from disallowances related to several issues, including the addition of Interim Bonus as Income, the addition of Loss from Jeevan Suraksha Fund as Income, the addition of Negative Reserve as Income, disallowance of Deduction u/s 80M, and disallowance of Interest on late deposit of TDS.
LIC confirmed that the financial impact of the demand is limited to the tax and interest amounts. The Corporation indicated that the demand is not expected to have a material impact on its operations or other activities.
| Detail | Information |
|---|---|
| Assessment Unit | Income Tax Department |
| Demand Details | Income Tax - INR 61,46,71,18,015/- Interest - INR 9,53,25,87,935/- |
| Date of Communication | March 25, 2026 |
| Reason for Disallowance | Interim Bonus as Income, Loss from Jeevan Suraksha Fund as Income, Negative Reserve as Income, Deduction u/s 80M, Interest on late deposit of TDS |
| Impact | Financial impact limited to the tax and interest amounts; no material impact on operations. |
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