Protection power upset over disability pension tax – Times of India

NEW DELHI: The finance ministry has ruled that the disability pension being given to military personnel will now be taxable unless they were forced or “invalidated” out of service because of the disability sustained in service, leading to some disquiet among the armed forces and veterans. The Central Board of Direct Taxes (CBDT), in its…

Protection power upset over disability pension tax – Times of India

NEW DELHI: The

finance ministry

has dominated that the

disability pension

being given to defense power personnel will now be taxable until they were compelled or “invalidated” out of carrier thanks to the incapacity sustained in carrier, main to a couple of disquiet amongst the defense power and veterans.

The Central Board of Deliver Taxes (CBDT), in its spherical issued on Monday, said it became once clarifying that “income tax exemption” would proceed to be accessible for all Navy, Navy and IAF personnel who beget been “invalidated out of carrier on story of bodily disability attributable to or aggravated by such carrier”.

But, it added, such tax exemption wouldn’t be accessible to personnel “who beget been retired on superannuation or otherwise”. This, in attain, manner the personnel with some disability who retire after plump carrier within the celebrated direction will now no longer obtain tax exemption on their disability pensions.


Protection power officers said this became once one more novel map to lower down advantages of the defense power because disability pensions – which is as effectively as to the celebrated pension given as per unfriendly — for superannuating personnel beget never been taxed sooner than.


Moreover, the spherical is silent on the date from which the expose will most probably be effective, and whether or no longer it goes to be retrospective or probably. “The finance ministry and CBDT contend they are true clarifying or interpreting the existing rules according to some representations they beget got received…the shuffle is clearly mischievous,” said a veteran.


It will most probably be stunning that the provision for disability pension has been misused by some personnel over the years, with even a couple of top defense power officers getting disability certificates true days sooner than their retirement to acquire better pensions. Even the seventh Central Pay Commission (CPC) had puzzled the bounce in disability pension cases, in particular in senior ranks, after the old pay panel had seriously hiked the payout for them.


“But a couple of aberrations must aloof no longer consequence in such an illogical step to penalize everybody. There beget been examples like Predominant Total Ian Cardozo and Lt-Generals Vijay Oberoi and Pankaj Joshi, amongst others, who selected to stay to it in carrier despite losing their legs and rose to excessive ranks,” said one more veteran.


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