Employer liability for pilot compensation clarified: insurance premia paid by employer not taxable as perquisite for pilots. Liability for compensation to pilots grounded as medically unfit is borne by Indian Airlines under service rules and a wage agreement, and insurance policies were procured to cover that obligation. Premiums are effectively payable by the employer, so reimbursement of such premiums to pilots is not to be treated as a perquisite in individual income tax assessments; Instruction No. 1343 dated 29 7 1980 is modified accordingly. The taxability of compensation on loss of flying licence remains under separate consideration.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Employer liability for pilot compensation clarified: insurance premia paid by employer not taxable as perquisite for pilots.
Liability for compensation to pilots grounded as medically unfit is borne by Indian Airlines under service rules and a wage agreement, and insurance policies were procured to cover that obligation. Premiums are effectively payable by the employer, so reimbursement of such premiums to pilots is not to be treated as a perquisite in individual income tax assessments; Instruction No. 1343 dated 29 7 1980 is modified accordingly. The taxability of compensation on loss of flying licence remains under separate consideration.
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