Amendment of First Schedule

Section 23 of the Finance Act, 1976 deals with amendment of First Schedule. Amendment of First Schedule 23. In the First Schedule to the Income-tax Act, with effect from the 1st day of April, 1977,— (a) for rule 2, the following rule shall be substituted, namely: — Computation of profits of life insurance business "2. The Act was enacted on 27 May 1976.

Amendment of First Schedule

23. In the First Schedule to the Income-tax Act, with effect from the 1st day of April, 1977,—

(a) for rule 2, the following rule shall be substituted, namely: —

Computation of profits of life insurance business

"2. The profits and gains of life insurance business shall be taken to be the annual, average of the surplus arrived at by adjusting the surplus or deficit disclosed by the actuarial valuation made in accordance with the Insurance Act, 1938 (4 of 1938), in respect of the last inter-valuation period ending before the commence ment of the assessment year, so as to exclude from it any surplus or deficit included therein which was made in any earlier inter-valuation period.";

(b) rule 3 shall be omitted;

(c) in rale 7, in sub-rule (1), clauses (i) and (iii) shall be omitted.

[Finance Act, 1976]

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Section 23, The Finance Act, 1976 (Act 66 of 1976).