Section 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 gainsarising 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 firsttime during the tax yearA – BWhere,
A = the amount received for the first time, including the amount allocated by way of bonus on suchpolicy; and
B = the aggregate of the premium paid during the term of the specified unit linked insurance policy tillthe date of receipt of the amounts referred to as 'A'.
2. Where the amount is received during thetax year, at any time after the receipt ofthe amount as referred to in Sl. No.1
C – DWhere, —
C = the amount received during the tax year, at any time after the receipt of the amount as referred to inSl. No. 1, including the amount allocated by way of bonus on such policy excluding the amount that hasalready been considered for calculation of taxable amount under this sub-rule during the earlier tax yearor years; and
D = the aggregate of the premium paid during the term of the specified unit linked insurance policy tillthe date of receipt of the amount referred to as 'C' as reduced by the premium that has already beenconsidered 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 upunder 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).