Computation of life insurance profits now uses annual average of actuarial surplus from the last inter-valuation period.

Computation of profits of life insurance business is to be the annual average of the surplus arrived at after adjusting the surplus or deficit disclosed by the actuarial valuation made under the Insurance Act, 1938, in respect of the last inter-valuation period ending before the commencement of the assessment year, excluding any surplus or deficit included therein from earlier inter-valuation periods; rule 3 is omitted and clauses (i) and (iii) of sub-rule (1) of rule 7 are deleted.

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