SBI Life Insurance Company Ltd. has received a rectification order from the Income Tax Department, resulting in a significant reduction in their tax demand. This development follows the company's appeal against an earlier assessment order.
On March 4, 2026, SBI Life Insurance received a rectification order from the Deputy Commissioner of Income Tax, Circle 1(3)1, Mumbai. The order was issued under Section 154 read with Section 143(3) of the Income Tax Act, 1961.
The rectification was sought by the company due to an erroneous computation of tax demand and interest in the original assessment order.
The rectification order has substantially reduced the tax demand. Initially, the tax demand was ₹4,286.63 crore with an interest of ₹1,030.55 crore, totalling ₹5,317.18 crore.
Following the rectification, the tax amount is now ₹315.84 crore, with interest reduced to ₹155.04 crore, bringing the total to ₹470.88 crore.
The original tax assessment for the financial year 2021-2022 had raised a significant demand on SBI Life Insurance. The company filed a rectification application under Section 154 of the Income Tax Act, 1961, challenging the computation errors in the original order.
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SBI Life Insurance has already filed an appeal at the Commissioner Appeals against the original order. The rectification order will be submitted before the appellate authority, and the grounds of appeal from the original filing will remain valid despite the reduced demand.
As of March 05, 2026, at 9:23 AM, SBI Life Insurance share price on NSE is trading at ₹1,931.60, up by 0.02% from the previous closing price.
The rectification order has provided significant relief to SBI Life Insurance by reducing the tax demand. The company continues to pursue its appeal to ensure all aspects of the original assessment are addressed.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Mar 5, 2026, 9:28 AM IST
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