TaxTMI 
TaxTMI 
Insurance Business
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....l valuation made in accordance with the Insurance Act, 1938 (4 of 1938), in respect of the last inter-valuation period ending before the commencement of the assessment year, so as to exclude from it any surplus or deficit included therein which was made in any earlier inter-valuation period.] ^14[Provided that any expenditure which is not admissible under section 37 in computing the profits and gains of a business, shall be included to the profits and gains of life insurance business.] 3.^ 5[****] Adjustment of tax paid by deduction at source 4. Where for any year an assessment of the profits of life insurance business is made in accordance with the annual average of a surplus disclosed by a valuation for an inter-valuation....
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....and loss account; (ii) any provision for diminution in the value of investment debited to the profit and loss account, shall be added back;] ^8[****] (c) such amount carried over to a reserve for unexpired risks as may be prescribed in this behalf shall be allowed as a deduction. ^13[Provided that any sum payable by the assessee under section 43B, which is added back in accordance with clause (a) of this rule, shall be allowed as deduction in computing the income under the said rule in the previous year in which such sum is actually paid.] C.-Other provisions Profits and gains of non-resident person 6. (1) The profits and gains of the branches in India of a person not resident in India a....
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.... Substituted vide Section 36 of the Finance Act, 1966 w.e.f. 01-04-1966 before it was read as, "twenty five" 3. Substituted vide Section 32 of the Finance (No.2) Act, 1967 w.e.f. 01-04-1967 before it was read as, "sections 30 to 43" 3A. Substituted vide Section 32 of the Finance (No.2) Act, 1967 w.e.f. 01-04-1967 before it was read as, "sections 30 to 43" 3B. Substituted vide Section 32 of the Finance (No.2) Act, 1967 w.e.f. 01-04-1967 before it was read as, "sections 30 to 43" 3C. Substituted vide Section 32 of the Finance (No.2) Act, 1967 w.e.f. 01-04-1967 before it was read as, "sections 30 to 43" 4. Substituted vide Section 23 of the ....
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.... than twelve, for each such premium or each such year 7½ per cent of such first year's premiums received during the previous year; (c) 90 per cent of the first year's premiums received during the previous year in respect of all other life insurance policies; (d) in respect of all renewal premiums received during the previous year, an amount calculated at such percentage thereof as is permissible under sub-section (2) of section 40B of the Insurance Act, 1938 (4 of 1938), as reduced by any expenditure or allowance which is not deductible under ^3A[sections 30 to 43A] in computing income chargeable under the head "Profits and gains of business or profession"." 5. Omitted vide Section 23 of the F....
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....ity in respect of outstanding policies is materially inconsistent with the valuation of investments so as artificially to reduce the surplus, such adjustment shall be made to the allowance for depreciation or to the amount to be included in the surplus in respect of appreciation of such investments as shall increase the surplus for the purposes of these provisions to a figure which is fair and just; (c) interest received during the inter-valuation period in respect of any securities of the Central Government which have been issued or declared to be income-tax free, shall not be excluded, ^1[but the assessee shall be entitled to a deduction from the amount of income tax with which he is chargeable on his total income, of an amount c....
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....hereto a fair proportion of the expenses incurred in the general management of the whole business. Bonuses or other sums paid to or reserved on behalf of policy-holders, depreciation of, and losses on the realisation of investments, and any expenditure or allowance other than expenditure or allowance which may under the provisions of ^3C[sections 30 to 43A] be allowed for in computing the profits and gains of a business, are not management expenses for the purposes of these rules;" 7. Substituted vide Section 126 of the Direct Tax Laws (Amendment) Act, 1987 w.e.f. 01-04-1989 before it was read as, "^3B[sections 30 to 43A]" 8. Omitted vide Section 52 of the Finance Act, 1988 w.e.f. 01-04-1989&nb....