SBI Life Insurance gains even as IT department sends demand order

Shares of SBI Life Insurance in Monday's trade (March 25, 2025) traded higher even as the entity informed of receiving an Income Tax Order from Faceless Assessment Unit, Income Tax Department on March 24, 2025

The aforesaid Income Tax Order will have no adverse material impact on the financial operations of the company and the same shall be contested by the company by way of an appeal before the Appellate Authority in accordance with the applicable provisions under the Income Tax Act, 1961, added the company in its filing with the exchanges.

At the last count, shares of SBI Life traded higher by 0.41 per cent or Rs 6.4 at Rs 1,576.45 apiece on the BSE.

The order relates to the demand for the assessment year 2023-24 and is to the tune of Rs 352.5 crore, also there is levied an interest amount of Rs 78.5 crore.

The Tax Authority has erroneously enhanced the Policyholder and Shareholder income respectively by adding the allowable expenses and exemptions allowable as per the Income Tax Act, 1961. Further, the above demand has been calculated considering the corporate tax of 30% (excluding surcharge and cess) instead of applicable special tax rate of 12.5% (excluding surcharge and cess) which is applicable to Life Insurance company as per section 115B, noted the filing.

SBI Life share price performance

On a year-to-date basis, the stock has climbed over 13 per cent, while in the last 3 years- the stock has delivered return to the tune of more than 44 per cent.