27 November 2015
Fully exempt vide the following instruction.
INSTRUCITON NO 2/2002 F. No. 200/51/99-ITAJ
Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi. The 2nd July, 2002.
To, All the Chief Commissioners of Income - tax, All the Directors General of Income-tax,
SUBJECT: Exemption from income tax to disability pension “disability element” and “ service element” of a disabled officer of the Indian Armed Forces – Instructions
Sir,
1. Reference have been received in the Board regarding exemptions income tax to disability pension, i.e. “ disability element” and “service element” of a disable officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not unitary allowing disability pension in spite of Boards – Instruction No 136 dated 14th January, 1970 [F.No.34/3/68-IT(A.I)
3. The matter has been re-examined in the Board and It has been decet to reiterate that the entire disability pension, i.e. “disability element” and “service element” of a disabled officer of the Indian Army Forces contains be exempt from income tax.
3. This may be brought to the notice of all the officers working under
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