India - Income Tax Act 2010 - Saarc

1.959 SCH. I - INSURANCE BUSINESS R. 6to be furnished to the Controller of Insurance,] subject to the following adjustments:—(a) subject to the other provisions of this rule, any expenditure orallowance 66 [including any amount debited to the profit and lossaccount either by way of a provision for any tax, dividend, reserve orany other provision as may be prescribed] which is not admissibleunder the provisions of sections 30 to 67 [43B] in computing the profitsand gains of a business shall be added back;(b) 68 [***]The following clause (b) shall be substituted for the existing clause (b)by the Finance Act, 2010, w.e.f. 1-4-2011 :68a(b) (i) any gain or loss on realisation of investments shall be added ordeducted, as the case may be, if such gain or loss is not credited ordebited to the profit and loss account;(ii) any provision for diminution in the value of investment debited tothe profit and loss account, shall be added back;69(c) such amount carried over to a reserve for unexpired risks as may beprescribed in this behalf shall be allowed as a deduction.C.—Other provisionsProfits and gains of non-resident person.6. (1) The profits and gains of the branches in India of a person not resident inIndia and carrying on any business of insurance, may, in the absence of morereliable data, be deemed to be that proportion of the world income of such personwhich corresponds to the proportion which his premium income derived fromIndia bears to his total premium income.(2) For the purposes of this rule, the world income in relation to life insurancebusiness of a person not resident in India shall be computed in the manner laiddown in this Act for the computation of the profits and gains of life insurancebusiness carried on in India.66. Inserted by the Finance (No. 2) Act, 1998, w.r.e.f. 1-4-1989.67. Substituted for “43A” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.Earlier, “43A” was substituted for “43” by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1967.68. Omitted by the Finance Act, 1988, w.e.f. 1-4-1989.68a. Prior to its substitution, clause (b), as inserted by the Finance (No. 2) Act, 2009, w.e.f.1-4-2011, read as under :“(b) (i) deduction in respect of any amount either written off or provided in the accountsto meet diminution in or loss on realisation of investments in accordance with theregulations made by the Insurance Regulatory and Development Authority;(ii) increase in respect of any amount taken credit for in the accounts on accountof appreciation of or gains on realisation of investments in accordance with theregulations made by the Insurance Regulatory and Development Authority;”69. See rule 6E for limits prescribed for amount that can be carried over to a “reserve forunexpired risk” : (50 per cent of net premium in case of fire or miscellaneous insurancebusiness ; 100 per cent of net premium in case of marine insurance business and 100 percent of net premium where insurance business relates to fire insurance or engineeringinsurance and which provides insurance for terrorism risks.)