Shares of Life Insurance Corporation of India (LIC) slipped 1% on 12 January after the company announced receiving two demand orders from the Mumbai income tax authorities totalling Rs 3,528.75 crore.

In its regulatory filing, the company said that they had received two orders from Income Tax (IT) authorities regarding Income Tax demand issued by the Assistant Commissioner of Income Tax, Mumbai, for a total of Rs 3,528.75 crore.

The tax demand was issued for the assessment year 2012-13, 2013-14, 2014-15, 2016-17, 2017-18, 2018-19 and 2019-20, the IT department has also issued an intimation for a refund of Rs 25,464.46 crore, after an order was issued from the Income Tax Appellate Tribunal (ITAT).

Regarding an interim bonus stated in the assessment order, the Income Tax Appellate Tribunal (ITAT) had instructed the assessing officer to look into LIC’s use of surplus. Following a review, the interim bonus was disallowed by the assessing officer, resulting in a tax impact of Rs 2,133.67 crore.

Similarly, LIC has received a demand notice for Rs 1,395.08 crore for the assessment year 2015–16.

The company intends to file an appeal for the aforementioned orders with the Commissioner (Appeals), Mumbai.

The company claims that there is no discernible effect on the corporation’s operations, finances, or other business activities.

At 2:30 pm, the shares of LIC were trading 0.54% lower at Rs 829.50 on NSE.