Is the disability pension including service element received by a soldier exempted from income tax

#1
Sir,
I am a retired sailor from the Indian Navy. I am drawing service Pension plus disability Pension from the government. As per Army rules the entire pension including the service element is exempted from income tax. But I cannot find the relevant section in the IT act. Kindly help me.
 

Raju Choudhary

Administrator
Staff member
#2
Hi can you check this....
INSTRUCITON NO 2/2002​

F. No. 200/51/99-ITA Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi. The 2nd July, 2002.​

To,
All the Chief Commissioners of Income - tax,
All the Directors General of Income-tax,

SUBJECT: Exemption from income tax to disability pension “disability element” and “ service element” of a disabled officer of the Indian Armed Forces – Instructions
Sir,


1. Reference have been received in the Board regarding exemptions income tax to disability pension i.e. “disability element” and “service element” of a disable officer of the Indian Armed Forces.

2. It appears that field formations in certain cases are not unitary allowing disability pension in spite of Boards – Instruction No 136 dated 14th January, 1970 [F.No.34/3/68-IT(A.I)

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 Army Forces contains be exempt from income tax.

4. This may be brought to the notice of all the officers working under your charge.

http://indianarmyveterans.gov.in/showfile.php?lang=1&level=1&sublinkid=650&lid=562
 
#3
Hi can you check this....
INSTRUCITON NO 2/2002​

F. No. 200/51/99-ITA Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi. The 2nd July, 2002.​

To,
All the Chief Commissioners of Income - tax,
All the Directors General of Income-tax,

SUBJECT: Exemption from income tax to disability pension “disability element” and “ service element” of a disabled officer of the Indian Armed Forces – Instructions
Sir,


1. Reference have been received in the Board regarding exemptions income tax to disability pension i.e. “disability element” and “service element” of a disable officer of the Indian Armed Forces.

2. It appears that field formations in certain cases are not unitary allowing disability pension in spite of Boards – Instruction No 136 dated 14th January, 1970 [F.No.34/3/68-IT(A.I)

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 Army Forces contains be exempt from income tax.

4. This may be brought to the notice of all the officers working under your charge.

http://indianarmyveterans.gov.in/showfile.php?lang=1&level=1&sublinkid=650&lid=562
 
#4
Thank you sir for the timely guidance. But one doubt still remains. Whether I should show it in my gross income in My IT return 2016 -17 or donot reflect it at all. In the former case, which section of IT act permits such exemption.
 

Raju Choudhary

Administrator
Staff member
#5
Hi Section 10 of the Income Tax Act contains provisions regarding most of the exempt incomes, Please take service of any Chareted Accountant to file your IT Return...
 
#7
Hi Section 10 of the Income Tax Act contains provisions regarding most of the exempt incomes, Please take service of any Chareted Accountant to file your IT Return...