ICICI Prudential Life Insurance Company Limited has received an Income Tax assessment order under Section 143(3) of the Income Tax Act, 1961 for Assessment Year 2024-25. The order was issued by the Assistant Commissioner of Income Tax, Central Circle 6(2), Mumbai on March 23, 2026 at 9:05 p.m., with a total demand of ₹3,910,838,913.

Assessment Order Details

The income tax assessment order addresses multiple issues that have been raised by the tax authorities. According to the company's regulatory filing, all issues mentioned in the assessment order are covered by favorable orders from Courts, Income Tax Appellate Tribunal Mumbai, and Commissioner of Income Tax (Appeals) in the company's own case for earlier years.

Financial Implications

The assessment order has resulted in a significant financial demand from the tax authorities. However, the company has stated that there is no impact at this stage, indicating confidence in its position.

Key Issues Raised

The assessment order covers several technical aspects of the company's tax treatment:

• Negative reserves considered as part of taxable surplus
• Transfer from shareholders account to policyholders account treated as income
• Exemptions under section 10 in respect of certain incomes not allowed
• Disallowance as per Section 14A read with Rule 8D made in respect of exempt income
• Shareholders income taxed as income from other sources

Company's Response

ICICI Prudential Life Insurance has announced that it will file an appeal against the assessment order before the Commissioner of Income Tax (Appeals) within the prescribed timelines. The company's regulatory filing emphasizes that all issues raised in the current assessment order have been previously addressed and resolved favorably in earlier years through various appellate forums including courts and tribunals.

The company made this disclosure under Regulation 30 and Regulation 51 read with Schedule III of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring compliance with regulatory requirements for material information disclosure to stock exchanges.

ICICI Prudential Life Insurance has received a substantial tax demand from income tax authorities, marking a significant regulatory development for the life insurance company.

Tax Assessment Details

The company has been served with a tax assessment order demanding ₹391 crore for Assessment Year 2025. This substantial amount represents a major financial exposure that the insurance company will need to address through the appropriate legal channels.

Company's Response Strategy

In response to the tax demand, ICICI Prudential Life Insurance has outlined its plan to contest the assessment. The company intends to file an appeal with the Commissioner of Income Tax (Appeals), which is the standard legal recourse available to taxpayers who disagree with assessment orders.

This appeal process will allow the company to present its case and challenge the basis of the tax demand before a higher tax authority. The Commissioner of Income Tax (Appeals) serves as an independent appellate authority that reviews disputed tax assessments.

Regulatory Implications

The tax demand represents a significant regulatory challenge for the life insurance company. Such substantial tax assessments typically arise from differences in interpretation of tax laws, treatment of specific transactions, or disputes over allowable deductions and exemptions.

The resolution of this matter will depend on the outcome of the appellate process, where the company will have the opportunity to present its arguments and supporting documentation to contest the assessment order.