HDFC Life Insurance announced on Friday that it has received a tax demand of Rs 1,495.17 crore from the Income Tax Department for the assessment year 2021-22, according to an exchange filing. This demand includes Rs 592.41 crore in interest.
The company is currently in the process of filing a rectification application before the Tax Authority regarding this demand. After the rectification order is passed, the revised tax demand is expected to be approximately Rs 1,141.09 crore, and the interest will be recalculated accordingly.
The tax authorities indicated that the company had not included 'Negative Reserves' in the taxable surplus, classified shareholders' net investment income as income from the life insurance business rather than 'Income from Other Sources,' and incorrectly claimed contributions from shareholders as deductions when calculating shareholders' profit.
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