Income tax rectification order lifts AY 2023 demand to ~₹ 591.42 crore; penalty nil, appeal shared
ICICI Life Insurance (formerly ICICI Prudential Life) received an income tax rectification order for AY 2023.
By ScoutQuest · · 2 min read
- Incremental Tax
- ~₹ 97.08 crore
- Incremental Interest
- ~₹ 133.11 crore
- Total Demand
- ~₹ 591.42 crore; penalty Nil
What the company has disclosed
ICICI Life Insurance Limited, formerly ICICI Prudential Life Insurance Company Limited, has received a rectification order under Section 154 of the Income Tax Act, 1961 from the Assistant Commissioner of Income Tax, Mumbai, for Assessment Year 2023. The order was received on October 19, 2026 at 6:23 P.M. This is an update to the company's earlier intimation dated September 27, 2024, which related to an order under Section 143(3) of the Income Tax Act, 1961 for the same assessment year.
The figures in the order
- The authority has rectified an order seeking incremental tax of ~₹ 97.08 crore and incremental interest of ~₹ 133.11 crore on the revised tax demand.
- Total tax stated: ~₹ 372.36 crore, which includes the incremental tax of ~₹ 97.08 crore.
- Total interest stated: ~₹ 219.05 crore, which includes the incremental interest of ~₹ 133.11 crore.
- Penalty: Nil.
- Total of tax and interest: ~₹ 591.42 crore.
What a rectification order is
A rectification order is a correction made to an earlier order passed by the tax authority. Here the correction is to the Assessment Year 2023 order, and the effect is an increase in the tax and interest already demanded. The company has quantified the revised totals as shown above.
What the company says about the impact
- It states there is no adverse material impact on the financial operations of the Company.
- No penalty or restriction or sanction has been imposed; penalty is stated as Nil.
- The company has shared an appeal against the order before the appropriate authority.
What a retail investor can take away
- This is a tax demand communicated by the Income Tax Department, with the incremental amounts and the revised totals spelled out.
- The company has assessed the impact as not materially adverse to its financial operations.
- The matter is being contested through an appeal, so the demand is subject to that process.
Also from ICICI Prudential Life Insurance Company
Earnings call: VNB up 22.3%, new business premium up 25.0% in H1-FY2027
21 Oct 2026
Margins declined mainly due to FCNR costs and lower yields on advances, while funding costs remained flat
19 Oct 2026
Rectification order: incremental interest of ₹ 40.96 lakh, original tax demand reduced
15 Oct 2026
More numbers
- Incremental tax sought by rectification order₹ 97,07,75,200
- Incremental interest on revised tax demand₹ 1,33,11,03,953
- Total tax₹ 3,72,36,41,785
- Total interest₹ 219,05,45,425
- Total of tax and interest₹ 591,41,87,210
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