DISABILITY PENSION NOT EXEMPTED FROM INCOME TAX.

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

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.