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  • Wednesday, 4 February 2015

    ENTIRE AMOUNT OF MILITARY PENSION IS EXEMPTED FROM IT IF YOU DRAW DISABILITY PENSION FROM MILITARY

    Instruction No 2/ 2001
    F.No. 200/51/99-ITA.I

    Govt of India
    Ministry of Finance
    Deptt of Revenue
    Central Board of Direct Taxes
    New Delhi, the 2
    nd July, 2001
    To :
    All Chief Commissioners of Income-Tax
    All Directors General of Income-Tax 
      
    Subject : Exemption from Income Tax to disability pension, i.e., “disability element” and “service element” of a disabled officer of the Indian Armed Forces – Instructions regarding
     
    Sir,
    References have been received in the Board regarding exemption from Income Tax to disability pension, i.e., “disability element” and “service element” of a disabled officer of the Indian Armed Forces.
     
    2. It appears that field formations in certain cases are not uniformly allowing disability pension inspite of Board’s Instruction No 136 dated 14th January 1970 (F No 34/3/68-II(AI) ).
    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 Armed Forces continues to be exempt from Income Tax.
     
    4. This may be brought to the notice of all officers working under you.

    Yours faithfully
      Sd/- 
    (B L Sahu) 
    OSD (ITA-I)  

    12 comments:

    1. Sir,
      Do you mean commissioned officer and PBOR both?

      K L Stanley John

      ReplyDelete
    2. Income Tax exemption is for all disability pensioners. I am sending some more details to blogger Sir in next comment

      ReplyDelete
    3. Dear Menon sir

      I beg to give more info. On exemption

      CBDT letter no. F No 200/51/99-ITA 1 dated 06 May 2000.

      RBI press release dt 20 Dec 2007. Available on Internet under heading No Income Tax Deduction from Disability Pension

      Para 88.3 of Def Pen Payment Inst. 2005 available on internet






      ReplyDelete
      Replies
      1. i didnt find any press release regarding this under the date mentioned above

        Delete
    4. Whether DA on military pension is taxable or not ?

      ReplyDelete
    5. i am nt getting my disable pension.please help me

      ReplyDelete
      Replies
      1. If you are based in Delhi, can call me at 09958003977. I am an ex JWO and practicing advocate in Armed Forces Tribunal otherwise you can contact some advocate practicing at regional bench of Armed Forces Tribunal of your area.

        Delete
    6. Please post whether special family pensioners and liberalised family pensioners exempted from income tax

      ReplyDelete
    7. This comment has been removed by the author.

      ReplyDelete
    8. I Purshottamavachat@gmail.com MOB 7447819066 AT/28/10/13 FROM CGDA ONE THIRD D/O PENSION SANCTION ON 18/9/13 BY DPPW. PL MY MOTHERS PENSION IN sbi.04357@sbui.co.in A/C NO 10324222660 PPO NO C/ENGR/1193/84 MY MOTHERS AGE 84 YRS OLD PL CHANGE OF PPO NO C/ENGR/1193/84 LEELA S.AVACHAT TO bmpune0655@centralbank.co.in A/C NO 3628685355 MY D/O PENSION IS SANCTION PL ON MY NAME P.S.AVACHAT FAMILY PENSION

      ReplyDelete
    9. I Purshottamavachat@gmail.com MOB 8446701229 AT/28/10/13 FROM CGDA PPO NO C/ENGR/1193/84 PL TRANSFER JOINT A/C PENSION TO sbi.00455@sbi.co.in A/C NO 20195643563 OR shanipar.pune@bankofindia.co.in A/C NO 051510110005474 PL REPLY MOTHER AGE 84 YRS NOT FELLING WELL PL I PURSHOTTAM S, AVACHAT SON MY NAME IN PPO NO PL

      ReplyDelete
    10. Your timely information has helped so many pensioners save on tax and we salute you for your efforts. We would like to extend special discount for our equity tips for our defence personnel.

      ReplyDelete