ICICI Prudential Life Faces ₹2.16 Billion Tax Demand

ICICI Prudential Life Insurance Company Ltd announced that it has received an income tax demand totaling ₹2.16 billion. The order, issued by the Income Tax Department, pertains to assessment year 2022–23 and includes both tax and interest components.

According to the company’s exchange filing, the demand arises from issues such as negative reserves being considered taxable surplus, transfers from shareholder accounts to policyholder accounts treated as income, and disallowance of certain exemptions. ICICI Prudential has stated that it is evaluating the order and intends to take appropriate steps, including filing an appeal, to protect shareholder interests.

Key Highlights

• Tax Demand: ₹2.16 billion order received from the Income Tax Department.
• Assessment Year: Relates to FY 2022–23.
• Basis of Demand: Negative reserves, shareholder transfers, and exemption disallowances.
• Company Response: ICICI Prudential plans to challenge the order through legal channels.
• Investor Impact: The company assures stakeholders of proactive measures to safeguard financial stability.

This development underscores the regulatory scrutiny faced by insurers and highlights the importance of compliance in India’s evolving financial sector.

Sources: NDTV Profit, Business Standard, Economic Times