HDFC Life Insurance Company announced on June 28 that it has received a tax demand notice from the Income Tax department for the assessment year 2021-22. The tax demand amounts to Rs 1,495.17 crore, and an additional demand of Rs 592.41 crore has been made as interest. The company has stated that the tax demand has been calculated incorrectly and that it will file a rectification application before the tax authorities. HDFC Life Insurance believes that the correct tax demand should be approximately Rs 1,141.09 crore.
Incorrect Calculation and Rectification Process
According to HDFC Life Insurance, there are arithmetical inaccuracies involved in the calculation of the tax demand. The company is in the process of filing a rectification application before the tax authority to correct these inaccuracies. Once the rectification order is passed, the tax demand will be reduced to approximately Rs 1,141.09 crore, and the interest will be recomputed accordingly.
Stock Price Update
As of 13:07 pm on June 28, the stock price of HDFC Life Insurance Company was trading at Rs 593.65 on the National Stock Exchange (NSE), which is 0.07 percent lower.
In summary, HDFC Life Insurance Company has received a tax demand notice of Rs 1,495.17 crore for the assessment year 2021-22. The company believes that the tax demand has been calculated incorrectly and will file a rectification application to correct the inaccuracies. The correct tax demand is estimated to be approximately Rs 1,141.09 crore.