Section 55
Section 55: computation of profits for insurance business
Section 55 is a short but powerful override provision: it takes the profits and gains of any insurance business entirely out of the normal computation rules that would otherwise apply under the Act, and routes them instead through the special rules in Schedule XIV.
What Section 55 says
Section 55 provides that, irrespective of anything to the contrary in the Act's provisions for computing income under "Income from house property", "Capital gains" or "Income from other sources", or in Section 390(5) and (6), or in sections 26 to 54, the profits and gains of any business of insurance - including insurance business carried on by a mutual insurance company or by a co-operative society - are computed as per the provisions of Schedule XIV.
Frequently asked questions
Do the normal business-income computation rules (sections 26 to 54) apply to insurers?
No - Section 55 expressly overrides sections 26 to 54, and the house property, capital gains and other-sources computation rules, for any insurance business. Insurance profits are computed only as per Schedule XIV.
Does Section 55 apply to mutual insurance companies and co-operative societies too?
Yes - the section explicitly covers insurance business carried on by a mutual insurance company or by a co-operative society, not just conventional insurance companies.
Want this applied to your actual filing, not just explained?
Get expert guidance on insurance business tax computationLast updated 9 September 2026