Computation of total income of film artist paid through annuity policy.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of an annuity, should be taxed on the entire amount paid by the producer for purchasing the annuity policy in the year of purchase or on the annuity instalment(s) paid under the annuity policy during a particular year. 2. In the cases of the film artists which the Board had on occasion to consider over a period, the following features were noticed: (i) The artists were maintaining their accounts....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... nature in the policy were not assignable in favour of any other person by the artist either during or after the deferment period. 3. This question was examined in consultation with the Ministry of Law. The Board have been advised that in case of a film artist who follows the cash system of accounting for professional income and who is paid remuneration either wholly or partly through an annuity ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ses all the features referred to in para 2 above before a decision is taken to include the annuity instalment(s) becoming due and payable in a year in the computation of the income from the profession of the film artist in the year. 5. It may, however, be noted that the benefit of these instructions is not intended to be available to the assessees other than the film artists. If such cases come t....