LIC Income Tax Notice: There was a decline in the shares of Life Insurance Corporation of India (LIC), the country’s largest government insurance company, on Friday. Till the time of writing the news, LIC shares were trading at the level of Rs 771, which was a decline of more than 1 percent. The reason for this decline is an instruction from the Income Tax Department, in which LIC has been asked to pay tax of Rs 7,100 crore for the financial year 2021-22. It is noteworthy that the company’s stock had reached its lowest level of 52 weeks last week.

Notice received from Income Tax Department

In an exchange filing, LIC said that the Income Tax Department has directed it to pay approximately Rs 6,147 crore in tax and Rs 953 crore as interest for FY 2022. The tax department cited several reasons behind this demand, including interim bonus, shortage of some funds and treating negative reserves as income; disallowing certain tax cuts; And include delay in TDS payment.

No impact on the company

LIC said it intends to challenge this tax order by filing an appeal before the Income Tax Commissioner (Appeals). The company further clarified that the payment of these taxes and interest will not have any significant impact on its day-to-day business operations.

JCompany’s quarterly results

LIC’s net profit during the October-December quarter of 2023 increased by 17% year-on-year to Rs 12,930 crore. In the same period, its net premium income also increased by 17% to Rs 1.26 lakh crore. The company’s total assets under management (AUM) increased by 8%—to Rs 59,16,680 crore from Rs 54,77,651 crore last year.

LIC share performance

According to the data available on NSE, the performance of LIC share has been lackluster in the last one month, registering a decline of 10 percent. At the same time, this stock has seen a decline of 4 percent in the last one year. However, over a three-year period, the company’s stock has given investors a return of 41 percent.