ALL TYPES OF DISABILITY PENSION IS NO LONGER EXEMPTED
FROM INCOME TAX. ONLY SOME CATEGORIES ELIGIBLE.
There was exemption from paying Income
Tax for Disability pensioners on both
Service Element and Disability Element.
GOI. Dept.of FM No..200/
51 / 00-ITA-1 dated 02-07-2001
Now, as per latest
Government order, IT exemption is
available to Armed Forces personnel WHO HAVE
BEEN INVALIDED OUT FROM
SERVICE ON ACCOUNT OF BODILY DISABLED , ATTRIBUTABLE OR AGGRAVATED TO SERVICES ONLY
and not to personnel who have been retired on
Superannuation or otherwise.
AUTHORITY:
GOI.MIN.FINANCE, Dept. of Revenue
–Central Board of
–Central Board of
Direct Taxes, Circular
No: 13/2019 dated 24-06-2019
Reason stated: There have been allegations of misuse of
disability pension.
As per CDA circular
526, the clauses of Discharges which may
be eligible for exemption are:
13.3. IV
and 13.3.III (V)
All
LMC ( Lower Medical Categories) which is attributable or Aggravated by
Military service – May be exempted from paying income Tax.
This
is for information of all Disability pensioners.