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

Discussion in 'Income Tax' started by Shasi Sahu, Dec 16, 2016.

  1. Shasi Sahu

    Shasi Sahu New Member

    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.
     
  2. Raju Choudhary

    Raju Choudhary Active Member Staff Member

    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. Shasi Sahu

    Shasi Sahu New Member

     
  4. Shasi Sahu

    Shasi Sahu New Member

    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.
     
  5. Raju Choudhary

    Raju Choudhary Active Member Staff Member

    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...
     
  6. Shasi Sahu

    Shasi Sahu New Member

    Thanks sir
     
  7. prolinc

    prolinc New Member

    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...
     
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