The insurer said the order is not expected to have a material adverse impact on its financial operations at this stage, as it intends to challenge the decision.
The deal forms part of Prudential's broader India strategy, alongside its health insurance venture and minority holdings in ICICI Prudential businesses.
The agreement addresses potential conflict-of-interest concerns while Prudential pursues its acquisition of a controlling stake in Bharti Life Insurance.
Indian insurers continue to face escalating tax scrutiny as Go Digit becomes the latest to receive a sizeable demand order, prompting plans for an appeal.
The order is the largest in a series of income tax demands hitting India's life insurers, as the tax authority challenges the sector's treatment of reserves, fund losses, and exemption claims.
