News

Published: February 17, 2024
Updated: February 17, 2024

LIC Receives Massive Tax Refund: Boosting Financial Strength

Tax Refund Windfall

Life Insurance Corporation of India (LIC) has secured a significant tax refund of Rs 21,740.77 crore from the Income Tax Department. The refund spans across assessment years from 2013 to 2020, marking a substantial financial win for the renowned insurer.

Long-Awaited Relief

After a prolonged process, LIC finally received refund orders for Assessment Years 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19, and 2019-20, totaling a substantial amount of Rs 25,464.46 crore. Despite the substantial refund, efforts are underway to pursue the remaining balance with the Income Tax Department.

Leadership Insight

Siddhartha Mohanty, the Chairman of LIC, had previously hinted at the anticipation of this substantial refund. The recent intimation from the Income Tax Appellate Tribunal (ITAT) marks the culmination of a process related to interim bonuses distributed to policyholders over the past seven assessment years.

Financial Performance Surge

LIC's financial performance has seen a remarkable surge, evident in its latest quarterly report. With a notable 49% increase in net profit to Rs 9,444 crore in the December 2023 quarter compared to the previous year, LIC continues to strengthen its financial foothold. Moreover, its net premium income rose to Rs 1,17,017 crore in the third quarter of the current fiscal year, showcasing sustained growth.

Robust Income Growth

The insurer's total income witnessed a commendable rise, reaching Rs 2,12,447 crore in the latest December quarter, compared to Rs 1,96,891 crore in the corresponding period of the previous year. This upward trajectory underscores LIC's robust financial performance amidst evolving market dynamics.

Investor Confidence

Despite a marginal decline in share value, LIC remains a solid investment option. With shares closing at Rs 1039.4 on Friday, investors continue to show confidence in the company's long-term growth prospects. The stock's 52-week low of Rs 530.05 and high of Rs 1,175 further highlight its resilience in the market.

The substantial tax refund received by LIC, coupled with its impressive financial performance, reaffirms its position as a stalwart in the insurance sector. As the company continues to navigate through dynamic market conditions, its resilience and commitment to financial excellence remain unwavering.