Benefit of inclusion of annuity in income for all professionals. - Income Tax - 1440/CBDT

INSTRUCTION NO. 1440/CBDT Dated: December 24, 1981 Reference is invited to Board's Instruction No.1310 (F.NO.201/146/78-ITA.II) dated 26th February, 1980 through which it was clarified that in the case of film artists who follow the cash system of accounting for their professional income and who are paid remuneration either wholly or partly through annuity policy as per agreement /contract, the particular amount of the annuity instalment as is paid in a year is to be included in the total income of the said year provided the annuity policy incorporates all the features mentioned in para 2 of the said instructions. 2. Para 5 of the said instructions further spelt out that the benefit of these instructions is not intended to be available to the assesses other than the film artists. 3. A point of view has, however been expressed that the instructions aforestated though issued with the reservations as in para 5 might not still bar other professionals from taking advantage of the benefit conferred to film artists vis-a-vis their cases. 4. The matter has accordingly been reconsidered and the board have now decided that pending the insertion of formal legal provision it might not be appropriate to stipulate that the instructions will not apply to other professionals. Accordingly par a 5 of the above instructions may be treated to have been deleted. 5. The procedure spelt out in this instructions for dealing with annuities in the case of film artists will protanto apply, subject to minor verbal modifications in para 2 therof, namely that the situations referred to therein as between producers and artists will be constructed as referring to - in the case of professionals - as between clients and their professionals. 6. Instructions No.1310 referred to above may be treated as to have been modified to this extent.