Life Insurance Corporation of India (LIC) has received an income tax refund order of ₹25,464 crore, and it is likely to be realised during the current quarter, its chairman Siddhartha Mohanty said. Last month, the Income Tax Appellate Tribunal (ITAT), Income Tax Department, issued intimation for a refund of ₹25,464.46 crore. The refund is related to interim bonuses to policyholders in the past seven assessment years.
"We are pursuing the matter, and we are hopeful of getting a refund from the Income Tax Department during this quarter itself," Mohanty said during the post-result interaction. During the quarter, he said, the Life Insurance Corporation of India (LIC) would be launching more new products, including child protection.
In the third quarter, LIC launched Jeevan Utsav, Index Plus and some more products, helping it to increase the value of new business (VNB) margin levels to 16.6%. The refund is likely to boost the bottom line of the corporation in the fourth quarter.
The state-owned insurer last week reported a 49% jump in net profit to ₹9,444 crore for the third quarter ended December 2023 against ₹6,334 crore in the year-ago period. Its net premium income improved to ₹1,17,017 crore in the third quarter of the current fiscal from ₹1,11,788 crore in the same period a year ago.
LIC's total income also rose to ₹2,12,447 crore in the latest December quarter compared to ₹1,96,891 crore in the year-ago period. The LIC board has approved an interim dividend of ₹4 per equity share of face value of ₹10 each for FY24.
The profit for the nine months that ended December 2022 was ₹22,970 crore is not comparable since it included an amount of ₹4,542 crore (Net of Tax) pertaining to the accretions on the Available Solvency Margin for the last quarter of 2021-22, which was transferred from Non-Par fund to shareholders account on September 30, 2022, Mohanty had said. The total premium income for the nine-month period ended December 31, 2023, was ₹3,22,776 crore compared to ₹3,42,244 crore a year ago.
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