1517. Death grants given by Indian Air Force Benevolent Association to members of family of officer/airman – Whether form part of estate liable to estate duty
1. Clause 2(a ) of the Memorandum of Association of the Indian Air Force Benevolent Association makes the following as one of the objects of the Association :
“To relieve hardship or distress among all past and present ranks of the Indian Air Force and their dependants, especially those disabled by flying, provided that the past personnel and/or their dependants are domiciled in India.”
2. It appears that under this clause certain grants known as “death grants” are given by the IAF Benevolent Association to the members of the family of an officer/airman of the Indian Air Force who dies whilst in service; that these grants are discretionary in nature that they accrue only in the event of death of an officer/airman whilst in service and not during his lifetime; and that these are made with a view to relieving hardship or distress to the dependants of the deceased officer/airman. Hence, claim to duty does not lie under any of the provisions of the Estate Duty Act. The death grants that could be received under the above clause from the IAF Benevolent Association do not form part of the estate of the deceased.
3. No attempt should, therefore, be made to levy estate duty in respect of death grants received by the widows and/or dependants of the Air Force personnel under the abovementioned clause.
Circular : No. 3, dated 11-5-1967.
