CBDT Clarifies “Gross Income” for IFSC Insurance Units under Section 80LA

CBDT Clarifies “Gross Income” for IFSC Insurance Units under Section 80LA

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance has recently shared a notification that in powers given by Section 80LA (sub-section 3) read with section 295 of the Income tax Act, 1961, the Central Board of Direct Taxes amends the below-mentioned Income tax Rules, 1962.

1.(1) These rules will be known as the Income Tax Twenty-Third Amendment Rules, 2025.

(2) They will come into effect on the date of their publication in the Official Gazette.

2.In the Income tax Rules, 1961, in APPENDIX II in Form No. 10CCF, in Annexure A-

(a) in serial number no. 6, after the words “brackets, figures and letters ‘in sub-section (2) of section 80LA (in Rs.)”, the brackets, words, letters and figures, “(In case of Unit Being an IFSC Insurance Office undertaking insurance business, the “gross income” will mean the profit and gains calculated as per the provisions of section 44 and the First Schedule of the Income Tax Act.

(b) in serial number 9, after the words, brackets and figures “gross eligible income (item 8) (in Rs.)” the brackets, words, letters and figures “(In case of the Unit being an IFSC Insurance Office undertaking insurance business, where the profit and gains are calculated as per the provisions of section 44 and the First Schedule of the Income Tax Act, this field will be submitted as Nil)” will be placed.