LIC Receives Income Tax Demand of ₹1.03 Lakh Crore for FY 2023-24

LIC of India has disclosed receiving a substantial income tax demand order from the Assessment Unit of the Income Tax Department for the financial year 2023-24. The communication was received on March 27, 2026, and disclosed to stock exchanges under Regulation 30 of SEBI Listing Regulations.

Tax Demand Details

The income tax demand comprises two major components totaling over ₹1.03 lakh crore:

Component:	Amount (₹)
Income Tax:	85,768.16 crore
Interest:	17,544.50 crore
Total Demand:	1,03,312.66 crore

Reasons for Tax Demand

The Assessment Unit has raised the demand based on disallowances made for three specific issues:

Addition of Interim Bonus as Income
Addition of Negative Reserve as Income
Disallowance of Deduction under section 80M

These adjustments have resulted in the substantial tax liability being imposed on the insurance giant for the assessment year corresponding to FY 2023-24.

Company's Response and Next Steps

Life Insurance Corporation has confirmed that the demand order is appealable under the income tax framework. The company has stated its intention to file an appeal before the Commissioner of Income Tax (Appeals) to contest the demand.

Financial and Operational Impact

Regarding the impact assessment, LIC has clarified that the financial impact is limited to the extent of the income tax and interest demand amount. The corporation has emphasized that there is no material impact anticipated on its operations or other business activities despite the significant quantum of the demand.

The disclosure was made through official communication to both BSE and NSE, with the company also making the information available on its corporate website at www.licindia.in for stakeholder access.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.98%	-2.57%	-12.48%	-13.80%	-3.01%	-12.52%

LIC of India has received a substantial income tax demand from the tax authorities for the financial year 2024, marking a significant development for the country's largest life insurance company. The total demand amounts to ₹10,330 crore, comprising both principal tax liability and interest components.

Tax Demand Breakdown

The income tax demand issued to LIC consists of two primary components that together form a substantial financial obligation for the insurance corporation.

Component:	Amount (₹ Crore)
Income Tax Demand:	8,576
Interest Charges:	1,754
Total Demand:	10,330

Company's Response Strategy

LIC has announced its intention to contest the income tax demand through proper legal channels. The company plans to file an appeal against the tax authorities' decision, indicating that it believes the demand may not be justified or may require further examination through the appellate process.

Operational Impact Assessment

Despite the significant financial magnitude of the tax demand, LIC has clarified that this development is not expected to create any major disruption to its operational activities. The company has indicated that its day-to-day business operations will continue normally, and the tax matter will be handled through appropriate legal and financial channels without affecting its core insurance services and customer operations.