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defence disability pension.

Brajpal Singh (Finance Professional) (12 Points)

29 July 2017

Sir I am a retired defence pensioner. I am also getting disability pension. Is my total pension is non taxable? if is it so, under which section of IT Act

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 29 July 2017

INCOME TAX EXEMPTION ON DISABILITY PENSION : ARMED FORCES PERSONNEL

INSTRUCITON NO 2/2002

F. No. 200/51/99-ITA 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 14thJanuary, 1970 [F.No.34/3/68-IT(A.I)

3. The matter has been re-examined in the Board and It has been decided 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.

4. This may be brought to the notice of all the officers working under your charge.

Yours faithfully,

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