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Exemption of Defence pension for reemployed Ex servi

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siva kumar

21 Points Posted on 20 April 2020

Dear sir,
I am Exserviceman and a
defence pensioner presently working in PSUs. I want to know my service
pension is exempted from income tax, please clarify,

Replies (6)

Quick Summary

This discussion clarifies the tax exemption status of defence pensions for ex-servicemen reemployed in Public Sector Undertakings (PSUs). Generally, defence pensions are not exempt from income tax unless the recipient is a gallantry award winner, such as a Param Vir Chakra, Maha Vir Chakra, Vir Chakra, or Sena Medal awarded for acts of courage. If you are receiving a pension and working in a PSU, you must declare your pension income and compute your tax liability, considering deductions available under Chapter VI-A if your salary exceeds the basic exemption limit.

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 21 April 2020

pension received by navy / defense employees is fully exempt .

Shankar Rugge

312 Points Posted on 21 April 2020

No It is not exempt unless you are gallantry award winner. You have to add the pension in your salary getting from PSU

Devil

Confidential

124 Points Posted on 21 April 2020

If u are receiving pension so it is not necessary that it is exempted
if u have awarded from param veer chakra
mahaveer chakar or veer chakra during service then your pension is fully exempted u/s10
and now u are working in PSUs so for this u have to make income tax computation and seeing if salary from PSUs exceeding basic exemption limit then you will take deductions as per chapter VI -A or your balance income after deduction u will pay tax on that income and it is mandatory for u filing return

Sena medal "When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by relevant service Headquarters