Rule 11UACA - Computation of income chargeable to tax under clause (xiii) of sub-section (2) of section 56

Life insurance income computation nets policy sums against unclaimed premiums to determine taxable income under the rule.

Taxable income from amounts received under a life insurance policy is computed by netting the sums received in the relevant previous year against the aggregate premiums paid during the policy term up to that date that have not been claimed as deductions or previously accounted for; first receipts and subsequent receipts are treated separately, and receipts under unit linked policies and certain other specified amounts are excluded.