Important Points for IC 26 - Life Insurance Finance Exam
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A levy charged by the government on a product, income or activity.
The Father of Economics, Adam Smith, has laid down the four basic principles which would help to build a good taxation system.
Income Tax on life insurance companies is not considered a normal business income. Calculation of tax on insurance companies is done in accordance with the provisions of Section 44 read with the First Schedule of the Income tax 1961.
Profits and gains of life insurance business will be taxed at the special rate of 12.5% as per section 115B.
Payment of tax deducted at source (TDS) has to be normally made within a week of the last day of the month in which the deduction is made.
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