[Computation of income chargeable to tax under clause (xiii) of sub-section (2) of section 56.
For the purpose of clause (xiii) of sub-section (2) of section 56, where any person receives at any time during any previous year any sum under a life insurance policy, then, the income chargeable to tax under the said clause during the previous year in which such sum is received shall be computed in the following manner, namely:—
(i) where the sum is received for the first time under the life insurance policy during the previous year (hereinafter referred to as first previous year), the income chargeable to tax in the first previous year shall be computed in accordance with the formula,—
A-B
where,—
A = the sum or aggregate of sum received under the life insurance policy during the first previous year; and
B = the aggregate of the premium paid during the term of the life insurance policy till the date of receipt of the sum in the first previous year that has not been claimed as deduction under any other provision of the Act;
(ii) where the sum is received under the life insurance policy during the previous year subsequent to the first previous year (hereinafter referred to as subsequent previous year), the income chargeable to tax in the subsequent previous year shall be computed in accordance to the formula,—
C-D
where,—
C = the sum or aggregate of sum received under the life insurance policy during the subsequent previous year; and
D = the aggregate of the premium paid during the term of the life insurance policy till the date of receipt of the sum in the subsequent previous year not being premium which—
(a) has been claimed as deduction under any other provision of the Act; or
(b) is included in amount 'B' or amount 'D' of this rule in any of the previous year or years.
Explanation.—For the removal of doubts, it is clarified that the sum received under a life insurance policy would mean any amount, by whatever name called, received under such policy which is not to be excluded from the total income of the previous year in accordance with the provisions of clause (10D) of section 10, other than the sum—
(a) received under a unit linked insurance policy; or
(b) being the income referred to in clause (iv) of sub-section (2) of section 56.]