For LIC, this is second time in recent years large IT refund has happened. Earlier it had received a IT refund of Rs 6000 crore
Life Insurance Corporation of India (LIC) said it has received an income tax refund of Rs 25,464 crore relating to interim bonus to policyholders in the past seven assessment years-from 2012-13 to 2019-20 except for 2015-16
Pursuant to the order of the Income Tax Appellate Tribunal (ITAT), Income Tax Department has issued intimation for a refund of Rs 25,464.46 crore, LIC said in a regulatory filing on Thursday.
For LIC, this is second time in recent years large IT refund has happened. Earlier it had received a IT refund of Rs 6000 crore.
“Pursuant to issuance of order giving effect of order of ITAT, Income Tax Department has issued intimation for a refund of Rs. 25,464.46 Crore. The ITAT had directed the assessing officer to examine the factual matrix/ utilisation of surplus and decide in accordance with law with respect to the issue of disallowance /addition on account of interim bonus made in the assessment order. On reconsideration, the Assessing Officer disallowed the same. Tax effect of such disallowance comes to Rs. 2133.67 Crore,” according to the exchange filing.
For the first half ended September, LIC had reported a net profit of Rs 17,469 crore as compared to Rs 16,635 crore in the same period a year ago.
In the first half of the current financial year, LIC’s new business premium income (individual) segment registered a 2.65 per cent growth to Rs 25,184 crore as against Rs 24,535 crore in the year-ago period, as per the filing. New business premium is the premium due in the first policy year of a life insurance contract.
In terms of market share measured by first-year premium income as per the insurance regulator IRDAI, LIC continues to be the market leader in life insurance business with an overall share of 58.50 per cent.
For six months ended September 30, LIC had a market share of 40.35 per cent in individual business and 70.26 per cent in group business.