LIC set to receive Income Tax refund of Rs 25,464 crore in FY24
- IBJ Bureau
- Feb 12, 2024
Life Insurance Corporation of India (LIC) has received an Income Tax refund order of Rs 25,464 crore, and it is likely to be realised during the current quarter, its Chairman Siddhartha Mohanty has said.
Last month, the Income Tax Appellate Tribunal (ITAT) had issued intimation for a refund of Rs 25,464.46 crore. The refund is related to interim bonuses to policyholders in the past seven assessment years.
“We are pursuing the matter, and we are hopeful of getting a refund from the Income Tax Department during this quarter itself,” Mr Mohanty has said during a recent post-results interaction.
During the quarter, LIC will be launching more new products, including child protection, Mr Mohanty has added.
In the third quarter, LIC launched Jeevan Utsav, Index Plus and some more products, helping it to increase the value of new business margin level to 16.6 per cent.
The refund is likely to boost the bottom line of the corporation in the fourth quarter.
The State-owned insurer has reported a 49 per cent jump in net profit to Rs 9,444 crore for the third quarter ended December 2023 against Rs 6,334 crore in the year-ago period.
Its net premium income has improved to Rs 1,17,017 crore in the third quarter of the current financial year from Rs 1,11,788 crore in the same period a year ago.
LIC's total income has also risen to Rs 2,12,447 crore in the latest December quarter compared to Rs 1,96,891 crore in the year-ago period.