Sir, I am a retired Colonel of Indian Army. I am drawing disability pension which is totally exempy from Tax. I am not aware which form to use for filing of return . The authority for it is as under:
Instruction No 2/ 2001
F.No. 200/51/99-ITA.I
Govt of India
Ministry of Finance
Deptt of Revenue
Central Board of Direct Taxes
New Delhi, the 2nd July, 2001
To :
All Chief Commissioners of Income-Tax
All Directors General of Income-Tax
Subject : Exemption from Income Tax to disability pension, i.e., “disability element” and
“service element” of a disabled officer of the Indian Armed Forces – Instructions
regarding
Sir,
References have been received in the Board regarding exemption from Income
Tax to disability pension, i.e., “disability element” and “service element” of a
disabled officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not uniformly allowing
disability pension inspite of Board’s Instruction No 136 dated 14th January 1970 (F
No 34/3/68-II(AI) ).
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 Armed Forces continues to be exempt from Income Tax.
4. This may be brought to the notice of all officers working under you.
Yours faithfully
Sd/-
(B L Sahu)
OSD (ITA-I)
CAclubindia
