Section First Schedule → Section Schedule I
Insurance Business
Quick Answer
Section First Schedule of the Income Tax Act, 1961 (Insurance Business) corresponds to Section Schedule I of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section First Schedule
The starting point is Section First Schedule of the Income Tax Act, 1961 — insurance business. Rules for computing the profits and gains of Life Insurance and General Insurance business.
The new code maps this to Section Schedule I: the provision is retained and renumbered as Section Schedule I of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Aligned with newer IRDAI accounting standards.
On the ground, changes to Section First Schedule carry a Medium impact. Only for insurance companies.
Sec First Schedule
Provision Summary
Rules for computing the profits and gains of Life Insurance and General Insurance business.
Sec Schedule I
Provision Summary
Retained. Aligned with newer IRDAI accounting standards.
Key Changes & Highlights
- Specific adjustments for surplus/deficit as per actuarial valuations.
Related Sections
Frequently Asked Questions
What does Section First Schedule of the Income Tax Act 1961 deal with?
Section First Schedule of the Income Tax Act, 1961 covers insurance business. Rules for computing the profits and gains of Life Insurance and General Insurance business.
Where does Section First Schedule of the ITA 1961 go under the Income-tax Act, 2025?
Section First Schedule of the Income Tax Act, 1961 maps to Section Schedule I of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Aligned with newer IRDAI accounting standards.
Why does the change to Section First Schedule matter for taxpayers?
The transition impact for Section First Schedule is rated Medium. Only for insurance companies.
What are the key changes to Section First Schedule under the Income-tax Act, 2025?
Specific adjustments for surplus/deficit as per actuarial valuations. These points are specific to Section First Schedule (Insurance Business).
Disclaimer: This mapping of Section First Schedule (Insurance Business) to Section Schedule I of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section First Schedule is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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