• Notification Date: 04-10-2023
  • Notification No: N/A

LIC receives Rs. 84 crore Income Tax Penalty Notice

Life Insurance Corporation (LIC) on Tuesday said that the Income Tax Department has demanded Rs 84 crore penalty pertaining to three assessment years and the Corporation has decided to file an appeal against the order. For the assessment year 2012-13, the tax authority has imposed a penalty of Rs 12.61 crore, for 2018-19 Rs 33.82 crore, while Rs 37.58 crore for the assessment year 2019-20, LIC said in a regulatory filing. 

The penalty has been imposed on state-owned insurers for violation of sections 271 (1)(c) and 270A of the Income Tax Act, 1961, it said. The notice was issued by the Tax Department on September 29, 2023, 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. 

On September 22, LIC had previously reported obtaining a GST notification for a total of Rs 290 crore. Tuesday's closing price of LIC shares was Rs. 645, down 0.73 percent from the opening price of Rs. 648.10. The price of LIC stock has decreased by more than 9% so far this year. A decrease of Rs 81.8 or 8.6 percent from the top end of its offering price range of Rs 902-949 per share, LIC shares had listed at Rs 867.2 each. The LIC share price on the NSE was Rs 872 per unit, a discount of Rs 77 or 8.1 percent. 

The 30-share BSE Sensex fell 316.31 points, or 0.48 percent, to settle at 65,512.10 on the domestic equity market front. The NSE Nifty, which is more inclusive, dropped 109.55 points or 0.56 percent to 19,528.75.