Section 115B → Section 114
Tax on profits and gains of life insurance business
Quick Answer
Section 115B of the Income Tax Act, 1961 (Tax on profits and gains of life insurance business) corresponds to Section 114 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 115B
Provision Summary
Taxes the profits of a life insurance business at a special flat rate of 12.5%.
Sec 114
Provision Summary
Retained. Alignment with IRDAI surplus calculation guidelines maintained.
Key Changes & Highlights
- No change.
Related Sections
Frequently Asked Questions
What does Section 115B of the Income Tax Act 1961 deal with?
Section 115B (Tax on profits and gains of life insurance business) Taxes the profits of a life insurance business at a special flat rate of 12.5%.
What is the new section number for Section 115B under the Direct Tax Code 2025?
Section 115B of the ITA 1961 maps to Section 114 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 115B under the new tax code?
Section 115B is marked as "Retained" with status "Active". Impact: Low - Niche provision solely for LIC and private life insurers.
What are the key changes to Section 115B under DTC 2025?
No change.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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