LIC Shares Dip 1% as Income Tax Department Issues Rs 3,528.75 Crore Demand Orders

12 Jan 2024 , 03:02 PM

LIC shares witnessed a 1% decline in early trade on January 12 following two demand orders totaling Rs 3,528.75 crore from income tax authorities in Mumbai.

The Income Tax Department issued intimation for a refund of Rs 25,464.46 crore for multiple assessment years (AY) after an order from the Income Tax Appellate Tribunal (ITAT).

ITAT directed the assessing officer to review LIC’s surplus utilization related to an interim bonus, resulting in a disallowed interim bonus and a tax effect of Rs 2,133.67 crore.

Additionally, LIC received a demand notice for Rs 1,395.08 crore for AY 2015-16, prompting the company to file an appeal before the Commissioner (Appeals), Mumbai.

LIC reassures that there is no significant impact on its financials, operations, or other activities due to these developments.

On January 2, LIC received a GST notice of Rs 806.3 crore from the Maharashtra deputy commissioner of state tax for compliance-related shortcomings in FY 2017-18, including GST dues, penalties, and interest payments.

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