Income-tax Act, 2025

INSURANCE BUSINESS - Schedule XIV

SCHEDULE XIV

[See section 55]

INSURANCE BUSINESS

A.Life insurance business

Profits of life insurance business to be computed separately.

1. If a person is engaged in life insurance business during the tax year, the profits and gains of such business shall be computed separately from profits and gains of any other business.

Computation of profits of life insurance business.

2. (1) The profits and gains life insurance business shall be the annual average of the surplus after adjusting the surplus or deficit disclosed by the actuarial valuation made as per the Insurance Act, 1938 (4 of 1938) for the last inter-valuation period ending before the commencement of tax year, so as to exclude from it any surplus or deficit from any earlier inter-valuation period.

(2) Any expenditure which is inadmissible under section 34 in computing the profits and gains of a business, shall be added to such profits and gains of life insurance business.

Adjustment of tax paid by deduction at source.

3. When an assessment of the life insurance business profits is made based on the annual average of a surplus disclosed by a valuation for an inter-valuation period exceeding twelve months, then, in computing the income-tax, payable for that year credit shall--

(a) not be given as per section 390 for the income-tax paid in the preceding tax year;

(b) be given for the annual average of the income-tax paid by deduction at source from interest on securities or otherwise during such period.

B.Other insurance business

Computation of profits and gains of other insurance business.

4. (1) The profits and gains of any insurance business other than life insurance shall be the profit before tax and appropriations as disclosed in the profit and loss account prepared as per the Insurance Act, 1938 (4 of 1938) or the rules made thereunder or the Insurance Regulatory and Develo .... To read the full section download the app from Google Play store