Income Tax Department Refunds ₹21,740 Crore to LIC with Remaining ₹3,700 Crore Pending

Life Insurance of India (LIC) of India recently received a tax refund of ₹21,740.77 crore from the Income Tax Department, for multiple Assessment Years. This is part of a total amount of refund of ₹25,464.46 crore. The remaining amount of ₹3,700 crore is still awaited as tax refund.

LIC’s improved financial performance was driven by several factors. Firstly, the corporation saw a windfall gain in the December quarter by selling a record $4.7 billion worth of shares of listed domestic companies as the shares reached all-time highs during the market bull run. According to a Mint study based on regulatory filings, the state-run insurer sold part of its investments in at least 100 top listed companies. This added up to ₹39,163 crore, which is the highest ever in the third quarter of a financial year.

In addition to this, LIC saw a 49 per cent year-on-year increase in net profit during the December quarter of FY2024, reaching ₹9,444.4 crore compared to ₹6,334.2 crore during the same period last year. The improved performance was mainly driven by an increase in net income from investments and growth in net premium income. LIC’s net premium income grew by 4.6 per cent to ₹1.17 trillion compared to ₹1.11 trillion in Q3 of FY24.

Furthermore, the company’s board proposed an interim dividend of ₹4 per share for FY24, with the record date set for 21 February 2024. Also, LIC’s net income from investments during the December quarter rose by 12 per cent year-on-year to ₹95,266.8 crore from ₹84,869 crore in Q3 of FY2023, while management expenses increased by 32 per cent year-on-year to ₹18,193.8 crore.

Overall, these financial indicators paint a positive picture of LIC’s performance for the December quarter, reflecting a strong investment portfolio and growth in premium income. This has led to the corporation’s enhanced profits and dividend distributions for the fiscal year. The company continues to pursue the remaining tax refund amount with the Income Tax Department and anticipates further positive developments in its financial performance in the upcoming quarters.