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Income tax for defence disability pensioners

09 February 2017

Defence disability pensioners are totally exempted from income tax under CBDT executive instruction. Should they file ITR 2 for filing ITR for information purpose only. If so, then which column of the ITR 2 is to be used for showing this exempt income ? Kindly guide us.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 09 February 2017

Instruction No 136
F.No. 34/3/68-IT(AI)
Govt of India
Central Board of Direct Taxes
New Delhi, dated the 14th Jan 1970

From :Shri S N Nautial
Secretary, CBDT

To:
All Commissioners of Income Tax

Subject : Exemption – Service and Disability Element of Disability Pension granted to a disabled officer of the Indian Army – whether exempted from Income Tax.

Sir,

1.Reference is invited to the Board’s Letter F No 42/9/59-IT(AI), dated the 5th Sept 1960 on the above subject wherein it was mentioned that in the cases falling under Item (29) of Finance Deptt. Notification No 878-F (Income Tax) dated 21-3-1922, the ‘disability element’ of the disability pension received by an officer of the Army will only be exempted from tax and that the ‘service element’ will be subjected to tax.

2. On reconsideration of the matter, in consultation with the Ministry of Law, the board are advised that item 29 of the notification does not differentiate between types of pensions. Accordingly in the cases falling under item 29 of the above notification, entire disability pension will be exempted from income-tax.

3. The above instructions may be brought to the notice of all assessing officers in your charge.........................................

You can mention the pension amount in Schedule EI,

Others, including exempt income of minor child

of ITR 2 or even ITR 2A as exempt income

manoj (student) (5205 Points)
Replied 09 February 2017

Fully agree with sir

Dipendra Nath Laskar (Nil) (23 Points)
Replied 09 February 2017

Respected Dhirajlal Rambhia Sir,

Many many thanks for your kind informations and guidance.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195722 Points)
Replied 09 February 2017

Jai Jawan. Always at your kind service.

Bhupesh Dave (2 Points)
Replied 06 July 2018

Dear Sir,

if the pensioner is receving pension from another department too like after taking retirment from Defence services on disability ground and has joined any bank andin that case he has to file ITR1.

and ITR1 does not refelect any thing related to this in 10, then how to show this income in ITR?

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