Preventing misuse of deductions of expenses claimed by life insurance business (WIDENING AND DEEPENING OF TAX BASE AND ANTI-AVOIDANCE)

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..... including any such business carried on by a mutual insurance company or by a co-operative society, to be in accordance with First Schedule of the Act , notwithstanding other specific provisions of the Act. 2. Rule 2 of the First Schedule , applicable for Life insurance business, states that the profits and gains of life insurance business shall be taken to be the annual average of the surplus arr .....

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..... y expenditure which is not admissible under the provisions of section 37 in computing the profits and gains of a business shall be included to (i.e. added back to) the profits and gains of the life insurance business. 4. The amendment will take effect from the 1st day of April, 2025 and will accordingly apply from assessment year 2025-2026 onwards. [Clause 87] Full Text : Union Budget 2024-25 (Ful .....

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