https://www.taxtmi.com/caselaws?id=282483 Life insurance income is computed under the special code in section 44 and Rule 2 of the First Schedule, using actuarial surplus or deficit as the statutory basis. Earlier valuation surplus cannot be taxed again, and transfers between policyholders' and shareholders' accounts are tax neutral; both accounts must be consolidated so that only the net insurance-business result is taxed, not shareholders' surplus separately as income from other sources. Section 14A does not displace the special insurance-business computation. Interest under section 234B was unsustainable where a bona fide basis existed for advance-tax computation. Negative reserves, being actuarial and notional, cannot be separately recharacterised as taxable income. en-us Wed, 23 Aug 2017 00:00:00 +0530 Fri, 09 Aug 2019 13:56:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=282483 Life insurance income is computed under the special code in section 44 and Rule 2 of the First Schedule, using actuarial surplus or deficit as the statutory basis. Earlier valuation surplus cannot be taxed again, and transfers between policyholders' and shareholders' accounts are tax neutral; both accounts must be consolidated so that only the net insurance-business result is taxed, not shareholders' surplus separately as income from other sources. Section 14A does not displace the special insurance-business computation. Interest under section 234B was unsustainable where a bona fide basis existed for advance-tax computation. Negative reserves, being actuarial and notional, cannot be separately recharacterised as taxable income. Case-Laws Income Tax Wed, 23 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=282483