Disability Pension

ITR 152 views 1 replies

RAJARSHI

CA-Finalist Entrepreneur

574 Points Joined May 2012

Sir/Ma'am, can you please tell me how disability pension is treated as per Income Tax Act? Is it an exempted income? is there any deduction u/s 80?How is it shown in ITR and which ITR to file? Thanks in advance.

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

196537 Points Joined July 2016

The disability pension given to Armed Forces Personnel are having two components-disability element & service element. Both are tax free vide Ministry of Finance notification read with clarification from CBDT and also there can not be any TDS as the amount is fully tax free.

You may decare it under 'exempt Income; Schedule 'EI" of an ITR.