Team Blitz India
NEW DELHI: Life Insurance Corporation of India (LIC) received a notification for a tax refund worth Rs 25,464 crore from the Income Tax Department for 7 Assessment Years (AYs) from 2012-13 to 2019-20. This is related to the interim bonus paid to policyholders during the assessment period.
On January 13, LIC reported to have got a tax demand for Rs 2133.67 crore for the seven years AYs and Rs 1395.08 crore for AY 2015-16.
In all these 7 AYs, Income Tax Appellate Tribunal (ITAT) had directed the tax department to reconsider the issue of interim bonus and the department has disallowed the same. The tax effect of the same is around Rs 2133 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.
