SBI Life Gets Major Relief as Tax Demand Slashed from Rs 5,317 Crore to Rs 471 Crore
SBI Life Gets Major Relief as Tax Demand Slashed from Rs 5,317 Crore to Rs 471 Crore
The State Bank of India (SBI) Life Insurance Company Ltd. has received major relief from the Income Tax Department as a rectification order reduced an earlier tax demand of Rs 5317.18 crore to only Rs 470.88 crore.
This was disclosed by the company in a regulatory filing to the stock exchanges.
Background of the Case
In March 2024, SBI Life had informed the stock exchanges that the Faceless Assessment Unit of the Income Tax Department had issued a tax demand order for FY 2021-22. The total demand of Rs 5317.18 crore included a tax of Rs 4286.63 crore and interest of Rs 1030.55 crore.
The company claimed that the demand was not calculated correctly. Therefore, it filed a rectification application under Section 154 of the Income Tax Act, 1961. The company had also filed an appeal before the Commissioner of Income Tax (Appeals) challenging the original order within the prescribed time.
As per the latest update, the Deputy Commissioner of Income Tax, Circle 1(3)1, Mumbai, has now issued the updated order correcting the calculation.
Key Details of Order
| Particulars | Details |
| Issuing Authority | Deputy Commissioner of Income Tax, Circle 1(3)1, Mumbai |
| Date of Order | March 4, 2026 |
| Section | Section 154 read with Section 143(3) of IT Act, 1961 |
| Financial Year | FY 2021-22 |
Original Vs Revised Tax Demand
| Particulars | Earlier Demand | Revised Demand |
| Tax | Rs 4286.63 crore | Rs 315.84 crore |
| Interest | Rs 1030.55 crore | Rs 155.04 crore |
| Penalty | NIL | NIL |
| Total | Rs 5317.18 crore | Rs 470.88 crore |
Financial Implications
The order has significantly reduced the tax demand from Rs 5317.18 crore to Rs 470.88 crore, offering a huge relief of Rs 4846.3 crore.
Further Steps by the Company
Even though the tax demand has reduced, SBI Life said it will continue with its appeal before the Commissioner of Income Tax (Appeals). Additionally, the company will also submit the latest rectification order before the appellate authority.
Company’s Disclosure Compliance
The above disclosure was made by the company to the NSE and BSE under Regulation 30 read with Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.