Income Tax Act, 1961
Sch. I Part B Rule 5. COMPUTATION OF PROFITS AND GAINS OF OTHER INSURANCE BUSINESS.
The profits and gains of any business of insurance other than life insurance shall be taken to be the balance of the profits disclosed by the annual accounts, copies of which are required under the Insurance Act, 1938 (4 of 1938), to be furnished to the Controller of Insurance, subject to the following adjustments:
(a) Subject to the other provisions of this rule, any expenditure or allowance inclulding any amount debited to the profit and loss account either by way of a provision for any tax, dividend, reserve or any other provision as may be prescribed which is not admissible under the provisions of sections 30 to 43B in computing the profits and gains of a business shall be added back;
(b) Such amount carried over to a reserve for unexpired risks as may be prescribed in this behalf shall be allowed as a deduction.
