Section 115B of Income Tax Act "Tax on profits and gains of life insurance business"
115B. (1) Where the total income of an assessee includes
any profits and gains from life insurance business, the
income-tax payable shall be the aggregate of-
(i) the amount of income-tax calculated on the amount of
profits and gains of the life insurance business included in
the total income, at the rate of twelve and one-half per
cent; and
(ii) the amount of income-tax with which the assessee would
have been chargeable had the total income of the assessee
been reduced by the amount of profits and gains of the life
insurance business.
(2) Notwithstanding anything contained in sub-section (1) or
in any other law for the time being in force or any
instrument having the force of law, the assessee shall, in
addition to the payment of income-tax computed under
sub-section (1), deposit, during the previous years relevant
to the assessment years commencing on the 1st day of April,
1989 and the 1st day of April, 1990, an amount equal to
thirty-three and one-third per cent of the amount of
income-tax computed under clause (i) of sub-section (1), in
such social security fund (hereafter in this sub-section
referred to as the security fund), as the Central Government
may, by notification in the Official Gazette, specify in
this behalf :
Provided that where the assessee makes during the said previous years any deposit of an amount of not less than two and one-half per cent of the profits and gains of the life insurance business in the security fund, the amount of income-tax payable by the assessee under the said clause (i) shall be reduced by an amount equal to two and one-half per cent of such profits and gains and, accordingly, the deposit of thirty-three and one-third per cent required to be made under this sub-section shall be calculated on the income-tax as so reduced.
115BA. (1) Notwithstanding anything contained in this Act
but subject to the other provisions of this Chapter 75[,
other than those mentioned under section 115BAA and section
115BAB], the income-tax payable in respect of the total
income of a person, being a domestic company, for any
previous year relevant to the assessment year beginning on
or after the 1st day of April, 2017, shall, at the option of
such person, be computed at the rate of twenty-five per
cent, if the conditions contained in sub-section (2) are
satisfied.
(2) For the purposes of sub-section (1), the following
conditions shall apply, namely:-
(a) the company has been set-up and registered on or after
the 1st day of March, 2016;
(b) the company is not engaged in any business other than
the business of manufacture or production of any article or
thing and research in relation to, or distribution of, such
article or thing manufactured or produced by it; and
(c) the total income of the company has been computed,-
(i) without any deduction under the provisions of section
10AA or clause (iia) of sub-section (1) of section 32 or
section 32AC or section 32AD or section 33AB or section
33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause
(iii) of sub-section (1) or sub-section (2AA) or sub-section
(2AB) of section 35 or section 35AC or section 35AD or
section 35CCC or section 35CCD or under any provisions of
Chapter VI-A under the heading "C.-Deductions in respect of
certain incomes" other than the provisions of section
80JJAA;
(ii) without set off of any loss carried forward from any
earlier assessment year if such loss is attributable to any
of the deductions referred to in sub-clause (i); and
(iii) depreciation under section 32, other than clause (iia)
of sub-section (1) of the said section, is determined in the
manner as may be prescribed.
(3) The loss referred to in sub-clause (ii) of clause (c) of
sub-section (2) shall be deemed to have been already given
full effect to and no further deduction for such loss shall
be allowed for any subsequent year.
(4) Nothing contained in this section shall apply unless the
option is exercised by the person in the prescribed manner
on or before the due date specified under sub-section (1) of
section 139 for furnishing the first of the returns of
income which the person is required to furnish under the
provisions of this Act:
Provided that once the option has been exercised for any
previous year, it cannot be subsequently withdrawn for the
same or any other previous year:
76[Provided further that where the person exercises option
under section 115BAA, the option under this section may be
withdrawn.]