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Income-tax Act, 1961 · Chapter IV: Computation of Total Income · D.—Profits and gains of business or profession

Section 44: Insurance business

The Income-tax Act, 1961 was repealed by the Income-tax Act, 2025 from 1 April 2026. The text is kept here because the judgments below apply it.

In plain words

Profits of any insurance business, including mutual insurance companies and co-operative societies, are computed under the rules in the First Schedule, and not under the usual rules for business income.

  • For life insurance, the Schedule broadly uses the actuarial valuation surplus.
  • For other insurance, it starts from the profit shown in the annual accounts, with adjustments.

A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.

Official text

Notwithstanding anything to the contrary contained in the provisions of this Act relating to the computation of income chargeable under the head —Interest on securities‖, —Income from house property‖, —Capital gains‖ or —Income from other sources‖, or in section 199 or in [section 28 to 43B], the profits and gains of any business of insurance, including any such business carried on by a mutual insurance company or by a co-operative society, shall be computed in accordance with the rules contained in the First Schedule.

Source: India Code (Legislative Department), the text of the Act as it stood before its repeal. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.

Supreme Court judgments citing the section 44