Income Tax Act amended to disallow inadmissible expenses for life insurers' profits from Apr'25. Actuarial surplus to include such expenses.

Income Tax Act amended to disallow inadmissible expenses for life insurers' profits from Apr'25. Actuarial surplus to include such expenses. https://www.taxtmi.com/highlights?id=79948 Income Tax: Section 44 of the Income Tax Act provides for computing profits and gains of life insurance business based on the First Schedule. Rule 2 of the First Schedule states that profits shall be the annual average surplus from actuarial valuation, excluding surplus from earlier periods. To prevent misuse and ensure disallowance of inadmissible expenses u/s 37, it is proposed to amend Rule 2 to add back such expenses to the profits of life insurance business. The amendment is effective from April 1, 2025, applying from assessment year 2025-2026 onwards. en-us Tue, 30 Jul 2024 21:42:36 +0530 Tue, 30 Jul 2024 21:42:36 +0530 TaxTMI RSS Generator Income Tax Act amended to disallow inadmissible expenses for life insurers' profits from Apr'25. Actuarial surplus to include such expenses. https://www.taxtmi.com/highlights?id=79948 Income Tax: Section 44 of the Income Tax Act provides for computing profits and gains of life insurance business based on the First Schedule. Rule 2 of the First Schedule states that profits shall be the annual average surplus from actuarial valuation, excluding surplus from earlier periods. To prevent misuse and ensure disallowance of inadmissible expenses u/s 37, it is proposed to amend Rule 2 to add back such expenses to the profits of life insurance business. The amendment is effective from April 1, 2025, applying from assessment year 2025-2026 onwards. Highlights Bill Tue, 30 Jul 2024 21:42:36 +0530 https://www.taxtmi.com/highlights?id=79948