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49. Computation of capital gains for purposes of section 67(5).– (1) If a person receives any amount under a specified unit-linked insurance policy, including any bonus allocated on such policy, then the capital gains arising from receipt of such amount in situations referred in column B of the following Table shall be computed according to column C thereof; Table
Sl. No. | Situations | Capital gains |
A | B | C |
1 | Where the amount is received for the first time during the tax year | A-B |
| | Where, |
| | A=the amount received for the first time, including the amount allocated by way of bonus on such policy; and |
| | B=the aggregate of the premium paid during the term of the specified unit linked insurance policy till the date of receipt of the |
| | amounts referred to as 'A'. |
2 | Where the amount is received during the tax year, at any time after the receipt of the amount as referred to in Sl.No.1 | C-D |
| | Where, — |
| | C=the amount received during the tax year, at any time after the receipt of the amount as referred to in Sl.No.1, including the amount allocated by way of bonus on such policy excluding the amount that has already been considered for calculation of taxable amount under this sub-rule during the earlier tax year or years; and |
| | D =the aggregate of the premium paid during the term of the specified unit linked insurance policy till the date of receipt of the amount referred to as 'C', as reduced by the premium that has already been considered for calculation of taxable amount under this sub-rule during the earlier tax year or years. |
(2) The capital gains as computed under sub-rule (1) shall be deemed to be the capital gains arising from the transfer of a unit of an equity-oriented fund set up under a scheme of an insurance company that includes unit linked insurance policies. (3) In this rule, the expression "specified unit linked insurance policy" means any unit linked insurance policy referred to in section 2(22)(c).
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