LIC Faces ₹6,146.71 Crore Income Tax Demand for FY22, Plans Appeal

• Life Insurance Corporation of India received an income tax demand order for ₹6,146.71 crore plus ₹953.25 crore interest for FY22.
• The demand arises from disallowances and additions by the Income Tax Department, including interim bonus and Jeevan Suraksha Fund loss as income.
• LIC plans to appeal the order before the Commissioner of Income Tax (Appeals).
• The insurer states the financial impact is limited to the demand amount, with no material impact on operations.
• The disclosure was made under SEBI's Listing Obligations and Disclosure Requirements Regulations, 2015.

Key Questions Answered

What specific disallowances led to LIC's ₹6,146.71 crore income tax demand?

LIC's ₹6,146.71 crore income tax demand arose from disallowances including the addition of interim bonus, loss from the Jeevan Suraksha Fund, and negative reserves as income.

How does LIC plan to challenge the Income Tax Department's demand order?

LIC plans to appeal the Income Tax Department's demand order. The order, received on March 25, 2026, pertains to the financial year 2021-22 and includes a demand for income tax and interest.

Will this ₹6,146.71 crore tax demand significantly impact LIC's operations?

No, the ₹6,146.71 crore tax demand will not significantly impact LIC's operations. LIC plans to appeal the order, stating there is no material impact on its operations.