Reimbursement of the premia on the policy against the loss of flying licence is not taxable. - Income Tax - 1505/CBDT

INSTRUCTION NO. 1505/CBDT Dated: March 31, 1983 Attention is invited to Board's Instruction No. 1491 dated 8th November, 1982 in which it has been clarified that the reimbursement of the premia on the policy against the loss of flying licence is not taxable as perquisite in the hands of the pilots, having regard to the fact that the liability is really that of the employer. In para 3 of this instruction it was stated that the question whether the compensation received by the pilot in the event of his losing the flying licence is taxable was separately considered and the instruction would follow. 2. The Board have considered this question and are advised that the receipt by way of compensation arising out of the insurance cover, on account of a pilot being declared medically unfit, will not be taxable as it would be of a capital nature. 3. These instructions may please be brought to the notice of all officers working in your charge. 4. Instruction No. 1491 and this instruction will apply to all pending assessments.