Pension

Uncommuted Pension is taxable as salary under section 15 in the hands of a Government employee as well as a non-Government employee;

 Any commuted pension received by an employee of the central government,  state government, local authority or statutory corporation is wholly exempt from tax under section 10 (10A) (i).
 

So, Monthly pension to army personnel is taxable as salary and basic exemption limit applies as per income tax act.