Bad news for this company after market hours, received a tax demand notice of ₹126.46 crore:The company also said that the key issues raised in the order have already been decided in its favour at the tribunal and appeal level, hence it is hopeful of getting relief in the legal process.

News Topical, Digital Desk : HDFC Life Insurance Company has received a major blow from the Income Tax Department. The company has received a tax demand notice of ₹126.46 crore for the assessment year 2023-24 (FY23). The company informed the stock exchanges that this order was issued by the Assistant Commissioner of Income Tax, Mumbai, on March 23, 2026. This includes interest of ₹45.55 crore, while no penalty has been imposed.

What are the reasons for the tax dispute?

The Income Tax Department has raised objections on several issues in its order, including classification of investment income of shareholders, claim of tax exemption on certain income, calculation of expenses and disallowance under Section 14A.

HDFC

Life has clarified that this order will not have a significant adverse impact on the company's financial operations. The company will appeal this decision before the appellate authority.

The company also stated that the key issues raised in the order have previously been resolved in its favor at the tribunal and appeal levels, and therefore, it expects relief in the legal process.

According to experts, although this tax demand is substantial, the company's decision to challenge it, combined with the support it received in previous cases, could be a sign of relief for investors.