Tax on profits and gains of Life Insurance business - Section 115B - Income Tax - Ready Reckoner - Income Tax

Tax on profits and gains of Life Insurance business - Section 115B Where the total income of an assessee includes any profits and gains from life insurance business, then the income-tax payable shall be @12.5% of profits and gains of the life insurance business. the amount of income-tax with which the assessee would have been chargeable had the total income of the assessee been reduced by the amount of profits and gains of the life insurance business. The assessee shall, in addition to the payment of income-tax computed above shall deposit, an amount equal to thirty-three and one-third per cent of the amount of income-tax computed above in such social security fund as the Central Government may notify in the Official Gazette. where the assessee makes during the said previous any deposit of an amount of not less 2.5% of the profits and gains of the life insurance business in the security fund, then the amount of income-tax payable by the assessee under above clause shall be reduced by 2.5% of such profits and gains and, accordingly, the deposit of 33 and 1/3 % required to be made under section115B(2) shall be calculated on the income-tax as so reduced . [ First proviso to section 115B(2) ]