SBI Life Insurance Company Ltd on Wednesday (March 26) said it has received an Income Tax Order under Section 270A from the Assessment Unit of the Income Tax Department, imposing a penalty of ₹23.80 crore for the Assessment Year 2018-19 (Financial Year 2017-18).

“…this is to inform that the Company has received an Order u/s 270A from the Income Tax Department on March 26, 2025 at 01.23 am. The aforesaid Income Tax Order will have no adverse material impact on the financial operations of the company, and the same shall be contested by the Company by way of an appeal before the appellate authority,” SBI Life Insurance Company said in a regulatory filing.

Also Read: SBI Life Insurance Q3 Results: New business premium grows 8%, margins meet estimates

The company received the order on March 26, 2025, at 1:23 AM. The tax demand and interest for the period stand at nil, with the penalty arising from the tax authority’s alleged erroneous addition of allowable expenses under the Income Tax Act, 1961.

SBI Life has stated that the order will not have any material impact on its financial operations and that it intends to contest the penalty by filing a rectification request and an appeal before the Appellate Authority.

Shares of SBI Life Insurance Company Ltd ended at ₹1,548.15, down by ₹8.25, or 0.53%, on the BSE.

Also Read: SBI Life expects to grow at 15% in FY25 with protection and annuity expected to see revival in the second half