SBI Life Insurance Hit with Double Tax Whammy: ₹593.1 Million Penalty Sparks Legal Battle

SBI Life Insurance Company finds itself in a tax tangle as it faces two separate penalties totaling ₹593.1 million. The company received a ₹238 million tax penalty on March 26, 2025, for the Assessment Year 2018-19, citing erroneous addition of allowable expenses. This follows a larger ₹352.50 crore tax demand with ₹78.50 crore interest for FY 2022-23, issued on March 24, 2025. SBI Life vehemently disagrees with both orders, citing calculation errors and misapplication of tax rates. The insurer plans to contest these demands through appeals, asserting that the penalties will not materially impact its financial operations.

Source: Reuters, CNBC TV18, Economic Times