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Two Indian insurers face tax orders of over ₹518 crore, plan to appealBoth companies made the disclosures in compliance with Securities and Exchange Board of India listing regulations, and said they do not expect the orders to materially affect ongoing business operations.By CNBCTV18.com March 24, 2026, 7:57:33 PM IST (Updated)2 Min Read

Two major Indian insurance companies, HDFC Life Insurance Company Ltd and ICICI Prudential Life Insurance Company, said on Tuesday, March 24, they received income tax assessment orders for FY2023‑24 and intend to appeal against them.HDFC Life said it received an order dated March 23 from the Assistant Commissioner of Income Tax, raising a demand of ₹126.46 crore plus ₹45.55 crore in interest, with no penalties levied. The insurer said the order alleges misclassification of shareholders’ net investment income, incorrect exemption claims, improper deduction of shareholder contributions, and inadmissible marketing expenses in the policyholder account.The company’s shares closed at 603.50 apiece, up 1.93% for the day.

Also Read: Waaree Energies clears ₹3,900 crore glass capex; ups stake in Waaree TranspowerIn a separate filing, ICICI Prudential Life Insurance Company Ltd has received an income tax assessment order for the assessment year 2024–25 from the Assistant Commissioner of Income Tax, Central Circle 6(2), Mumbai. The company will file an appeal before the Commissioner of Income Tax (Appeals) within the prescribed timelines.

The assessment order under Section 143(3) of the Income Tax Act, 1961 cites the following issues: negative reserves considered part of taxable surplus, transfer from shareholders’ account to policyholders’ account treated as income, certain exemptions under Section 10 not allowed, disallowance under Section 14A read with Rule 8D for exempt income, and shareholders’ income taxed as income from other sources.

The company noted that these issues have been addressed in prior years through court and Income Tax Appellate Tribunal orders. The total financial implication mentioned in the order includes ₹347.13 crore in income tax and ₹43.95 crore in interest, aggregating to ₹391.08 crore, with no penalty imposed. The company stated that there is no immediate impact at this stage.

Also Read: LG Electronics India gets draft tax order with ₹573 crore disallowance for FY23

Continue Reading(Edited by : Shoma Bhattacharjee)First Published: Mar 24, 2026 6:11 PM ISTTagsHDFC Life InsuranceNew India AssuranceSEBI