HDFC Life Insurance on Friday said 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. The tax demand also includes a demand of Rs 592.41 crore as interest.
The tax authorities said that the company had not considered ‘Negative Reserves’ as part of the taxable surplus, shareholders’ net investment income was classified as income from life insurance business and not as ‘Income from Other Sources’. Contributions from shareholders were incorrectly claimed as deductions while calculating shareholders' profit.
