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 2nd 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)  

REPORT OF EX-SERVICEMEN RALLY ON 1 FEB 2015 SUNDAY AT JANTAR MANTAR ORGANIZED BY IESM Dear Veterans The rally started at 1000h on 1 Feb 2015 Sunday at Jantar Mantar. By 1100h the venue was full. 
  The rally was attended by more than 8000 ex-servicemen from sepoys to Generals and more than 100 families. Veterans' of all three services recorded their presence and demanded early release of notification for OROP. The mood in the rally was upbeat and all veterans exuded confidence and thanked IESM for taking up the problems of ex-servicemen and bringing them to the center stage. Ex-servicemen were very appreciative of the help being given by the pension, ECHS and CSD div of IESM.

The Veterans exhorted the IESM leadership to continue the fight on behalf of ex-servicemen and their families with the Government till their demands were accepted by the Government. They all appreciated the stand of IESM for calling this rally to remind and request the Government for early release of notification. ESM praised IESM for declaring that this rally is not to confront the Government but it has been organized to assist the Government to over-rule the objections by the bureaucracy for release of OROP.
 
Speakers; more than 50 speakers including women speakers addressed the rally. They exhorted the Governing body of IESM to increase pressure on the Government and confirmed their resolve that ex-servicemen would not accept anything less than full OROP.
  List of Speeches; All the speakers were applauded by the crowd. All speakers encouraged the IESM to continue the fight for fulfillment of demands of ex-servicemen and fight for justice and equality. Speakers after speaker asked one question to the Government what is holding the Government in taking a decision on the OROP, which has been passed by two Parliaments and is personal commitment of PM of India?  All present shouted that we would not rest till OROP is granted for all ORs, JCOs and officers'. All speakers explained the meaning and origin of OROP.
   The Speakers also criticized the Government policies of neglecting the defense personnel after extracting juice from their life and thereafter forgetting them. Army personnel are forced to retire after service of 20 years and at the age of 37 to 40 years. This is the time in their life when they have maximum responsibilities and have old parents to look after but are without a job and on meager pension. It should be the responsibility of the Government to give them job till 60 years of age as is the case of all Government employees.
  Speakers warned all present and the ex-servicemen community at large to be very careful from few disgruntled veterans, who had been working against the interest of IESM. These veterans were spreading rumors and were collecting funds on the name of IESM. This activity by these veterans was a fraud on the ex-servicemen community. All ex-servicemen were requested to give membership fee and donations only by cheque in favour of IESM a/c no 06162000001330. Some of the ESM had been spreading rumours about cancellation of the Rally but despite their propaganda more than 8000 ESM gathered for the rally.
  Speakers also expected more improvement in ECHS and canteen facilities where in they wanted these services to be extended to all the ex-servicemen in villages, where bulk of the ex-servicemen settle after retirement. All the speakers were unanimous in demanding more pensions for widows. They expressed that the widows were the most neglected segment of ex-servicemen family. It was surprising that the Govt did not pay any attention to the widow of a soldier who had given his life for protecting the nation. 
  IESM Delegation Met the Raksha Mantri;
IESM delegation consisting of 30 ESMs and widows was invited by Raksha Mantri to discuss their problems and their expectations of OROP. ESM from all states joined the delegation and went to Kotah House to meet the RM at 1100h. COAS Gen Dalbir Singh Suhag was also present in the meeting.
  Raksha Mantri welcomed all ESM and their families and explained that he was convinced that OROP is a genuine demand of Armed Forces/ex-servicemen and must be given. He further expressed that he has gone into all nuances and finer points of OROP and has understood the OROP and genesis of OROP. He stated that he has over-ruled the objections of MOD that if OROP is given to Armed Forces other services will also demand it. He confirmed that Armed Forces pension should be called Mil Pension and hence other services are not entitled for it. He appreciated that service conditions of Armed Forces are very difficult and they need more compassion from the nation and the Government. 
  He further explained that he is working on the financial effects of OROP and would soon send the file to Ministry of Finance. He made following commitments to the delegation.  * That OROP would be as per definition approved in the Parliament. * That there will be no dilution in OROP from the approved definition. * That he would approve the file soon and would send it to Ministry of Finance latest by 17 Feb 15.  * That he would personally discuss the OROP with Finance Minister and get it approved at the earliest and may be within a month.  * That OROP will be applicable w.e.f 1 Apr 14 irrespective of its date issuance of Government letter. * That he is targeting to release OROP letter as per approved definition before End March 15.  
  He further explained that he has been quoted out of context about 80% satisfaction. He explained that in any situation there will be some who would object and his comment on 80% satisfaction level was for them. He again emphasized that his effort was to ensure that there should be no anomalies in the letter issued for implementation of OROP. 
 The delegation explained to him that there will be no anomalies if the approved definition of OROP is followed without change of its text.  
  The delegation members brought to his notice the plight of veer naris. Gp Capt VK Gandhi explained that these widows were denied increase in pension in 2009 on flimsy grounds by MOD. This increase in pension was given to all ESMs.  This was a very insensitive decision on part of MOD to deny increase in pension for widows. RM queried from widows about their pension and their difficulties. He was told that a widow gets only Rs 3500/ pension and they are living a life of great hardship. RM sympathized with them and explained that he was not aware of their problems and would look into these problems. He instructed COAS to put the issue to MOD. RM explained to the delegation that he has instructed to cancel all legal cases filed by MOD in case of disabled soldiers.
  The issue of grant of arrears of increase of pension from 1 Jan 06 was also brought to his notice Gp Capt VK Gandhi and it was explained that while central Government employees had already been paid the MOD has not initiated any action on release of payment. MOD is probably taking shelter that only litigants will be paid. This is not a valid ground to refuse payment of arrears. This decision/attitude will force veterans/Armed Forces personnel to go to court for release of arrears from 1 Jan 06. This will be against the stated stand of honorable RM. He promised to look into this issue.  
  The delegation was happy about the commitments made by RM and came back with an upbeat mood.  The delegation has felt for the first time that there is someone in Government who is sensitive to their litany of woes and he is RM of India Mr Manohar Parrikar.  
  Discussion with COAS Gen Dilbag Singh Suhag; Delegation members discussed their problems with COAS after meeting with RM was over. The delegation explained to COAS that they were facing difficulties in ECHS and CSD even in areas with high density of veterans. COAS explained that he had included ECHS and CSD for veterans in his high priority list. He had issued instructions that ECHS administration needed to be more compassionate in attending to veterans. His instructions were that atleast two staff members should be there to welcome all patients coming to polyclinic for treatment. These staff members would guide or provide wheel chairs to senior veterans on coming to polyclinic.

 He was similarly looking into CSD facilities. He also confirmed that he had issued instructions to commanders that they should liaise with state CM and improve working of zila sainik boards in the cities and improve the condition of sainik aaram gahs where-ever available. He assured the delegation that he was doing his best to take care of veterans because soon he and other seniors would join veterans on retirement. 
  Maj Gen Satbir Singh SM, Chairman of IESM; Maj Gen Satbir Singh recounted the sacrifices made by the ex-servicemen and asked the Government that why should a sepoy who had fought in 1962, 1965 and 1971 wars and  in 1999 in Kargil war get less pension than the sepoy who was retiring today. He explained that Government had now realized that ex-servicemen need more compassion from the Government and the nation and had in principle approved OROP. He lamented that notification of OROP has not been released by government on some pretext or other even after nine months of its approval. He explained that today’s rally had been organized only to remind the Government to keep up their promise and release the Government notification for OROP at the earliest. He informed the gathering that a delegation of about 30 ESM and Veernaris had just met the RM at 1100h today. RM was very sympathetic to ex-servicemen and widows and he had given his commitment that he would ensure that OROP file would be sent to MOF latest by 17 Feb 15 and he would personally follow up with the Finance Minister for its approval. RM had committed that OROP will be as per definition approved by Parliament and it would not be diluted. In-fact RM went a step further and told that OROP is special to only Armed Forces and will not be applicable to other central government employees. OROP will be called Military Pension and is special to only Armed Forces. 
  He invited all ex-servicemen associations in India to come forward and join hands with IESM and fight for the right of ex-servicemen. He stated that unity of purpose is the call of the day and all ESM organizations must unite to fight for injustice being done to Veterans. All present roared and shouted that Gen Satbir tum lado hum tumhare saath hain. The Gathering shouted slogans OROP le ke rahenge le ke rahenge. Fouji ekta zindabad zindabad.  IESM zindabad. 
  Chairman thanked veterans for coming for the rally despite their other pressing works and extreme cold weather. Admin arrangements; Water, tea, biscuit and Mathhi arrangements were made for the gathering. It was appreciated by the veterans. All members of the Core group whole heartedly participated in making the rally comfortable for the veterans. Parallel Rallies All over India; ESM all over India spread over Varanasi, Kanpur, Mumbai, Secunderabad, Tricity Chandigarh, Chennai and Trivandrum also presented memorandums to Gov/CM/DC for onward transmission to Government. One copy of these memorandums was received by IESM office and was included in the memorandum presented to RM.  IESM appreciates the enthusiasm of state conveners in arranging the rallies in their area.  Press coverage; Press and media in India and abroad covered the event. Headline today, INDIA TV, and PTC channels were present in full form and had recorded the proceedings of the rally.  World media has also reported the event. Local media all over India also covered the parallel rallies arranged by conveners Membership; More than 300 members joined IESM during the rally.
  Donations; IESM is very thankful to  veterans who had wholeheartedly contributed funds for the rally. More than Rs 20000/ were received as donations during the rally.  IESM appreciates the contribution of all veterans and expressed that this money would be used for welfare of ex-servicemen and realizing the dreams of all veterans and widows. Vote of Thanks; IESM thanks veterans in making the rally successful. Gen Sec thanked ESM that they had come from 14 states of India to participate in rally. Gen Sec thanked veterans for participate in the rally in large numbers despite extreme cold weather. 
  IESM thanks Col Alexander for giving support to design and produce banners and back drop banner for stage free of cost.  IESM thanks all the veterans for donating generously for the cause of ex-servicemen. THE FIGHT FOR OROP WILL CONTINUE TILL NOTIFICATION FOR OROP IS ISSUED. IESM REQUESTS ALL THE VETERANS' AND SUPPORTERS TO DONATE GENEROUSLY FOR VETERANS' CAUSE. PLEASE MAKE THE CHEQUES IN FAVOUR OF 'INDIAN EX-SERVICEMEN MOVEMENT A/C NO 06162000001330. 
  IESM requests members to not to be misled by anti IESM propaganda by few politically motivated veterans. IESM has been established for welfare of veterans and will continue to represent veterans (whether IESM members of not) with the Government. IESM will dedicate itself in solving problems of veterans. The Rally was closed at 1500h.

Gp Capt VK Gandhi VSM

BRIEFING FROM MAHA RALLY OF VETERANS AT JANTAR MANTAR

Despite Boycott call by Sanjha Morcha,he rally was well attended byVeteransfromPunjab,Haryana,Delhi
Himachal,Jummu,UP,Bihar  even from Tamil nadu.The gathering was more than expected & is about to seven to eight thousand. 
 After the inauguration of Rally at about 11 am a delegation of 25 ESM including 4 veer Naris of Jawans Commanded by Gen Satbir singh met defence minister. The COAS was also present at the meeting along with The DM .
The DM had a cordial interaction with Gen Sabirsingh & other delegates. The DM also interacted with Veer Naris who explained that their family pension was less than the earnings of casual labor women. 
The DM assured the delegation that the modalities of  OROP  including family & disability pension will be completed by MOD BY 16 Feb & the same will be sent to MOF for sanction& allocation of sufficient funds in the budget.
He has also assured the delegation to obtain the approval of MOF by 28 feb & issue the implementation letter before 31 arch2015.Detailed letter from IESM will follow.

A TACTICAL MOVE TO THWART MAHA RALLY ON 1st FEB 2015

'One Rank, One Pension' spadework moving on fast-track, says Defence Minister Manohar Parrikar

By PTI | 31 Jan, 2015, 03.02PM IST

"In principle, it has been approved earlier. Discussions are on to fix modalities... By next week, the view of the defence ministry will be formed," Parrikar said.

NEW DELHI: Defence Minister Manohar Parrikar today said his Ministry would finalise modalities for the much delayed 'One Rank, One Pension' (OROP) scheme by next week and the file would be sent to Finance Ministry for further action.
"In principle, it has been approved earlier. Discussions are on to fix modalities... By next week, the view of the defence ministry will be formed," Parrikar told reporters here while declaring that the OROP issue has been fast-tracked and he has already held several meetings on it.
As and when the exact implementation status for the scheme is finalised by defence ministry, it will be taken up to the Ministry of Finance, he said.
http://economictimes.indiatimes.com/news/ 
http://www.tribuneindia.com/news 
https://www.youtube.com/Watch Maha Rally 

ANNA STEPS IN FOR OROP

JAI JAWAN” “JAI KISSAN” DHARNA cum RALLY

SUB: Non Implimentation of One Rank One Pension , Land Reform Bill & Janlokpal Implimentation and Anti Corruption bills not passed till date

Dear Sir,

Shri Anna Hazare , a renound social activist is planning DHARNA cum Rally at Jantar Mantar / Ramleela Maidan New Delhi In begining of Mar 2015, to fight for OROP and amendments passed by Modi Govt in the Land reform bill directly affecting the welfare of Jawans and Farmers of our country.

This is to bring to your kind notice that Shri Anna Hazare ji HIMSELF BEING AN EX SERVICEMEN has been active in welfare of ex servicemen .He inaugurated Saheed Samarak (War Memorial )in honour of martyrs of Distt Baghpat (UP) on 09 Feb 2014 constructed by Ex Servicemen and Anna Samarthaks in memory of the martyrs who laid down their lives in extreme sacrifice for our country.

Annaji has been fighting for corruption free India, if so dont you think after giving promise of OROP at Rewari by Gen VK Singh and Shri Narender Modi as part of election speech prior to assembly elections and then not fullfilling those promise or diluting them in any way means nothing but cheating or we can say it is indirect corruption against expectations to gain votes.Annaji has decided to fight for OROP promised yet not being delivered.

We fully regard various ex servicemen organisations , both their identity as well as the precious work they have been doing for the welfare of ex servicemen. Some of us do get carried away for personal gains in term of rajniti and Money,but we can not stop working for unity just because of a few.We believe atleast 95% and above people who had the honour of wearing uniform have high moral values and utmost loyality.

Annaji is planning to have JAI JAWAN JAI KISAN rally in Feb/Mar 2015 at Delhi against all form of corruption where by we are going to demand Janlokpal/Lokayukts immidiate implimentaion along with 6 more anti corruption bills pending in loksabha withmain demand to immidiately impliment OROP without dilution for our jawans/exservicemen. The dates for the same will be decided at Ralegan with combined representatives of all exservicemen organisations.

PROVISIONAL PLANNING OF DHARNA & RALLY

• Dharna & rally shall continue till demands are met.
• First day probably 23 Mar 2015 ( saheed Bhagat Singh Diwas) shall be for demand of OROP.
• Rally shall be tentatively held at Ramlilla Maidan/Jantar Mantar.
• Representatives of various EX servicement Organisations only will be on stage with Annaji.
• Representatives of various EX servicement Organisations will be given 5 minutes to give their support and views.
• The rally will be 100% apolitical (No Politicals talks permitted)
• 100% attendance of members of each ex servicemen organisation to be ensured.
• Annaji karyakartas/Supporters from all northern states will attend.

In case Govt doesnt agree, Annaji shall be declaring darna till demands accepted.

Detailed planning shall be done at ralegan with Annaji along with all Ex Servicemen Organisations representatives.

In view of the above an initial meeting of all representatives of all ex servicemen organisations is required to be held at Delhi in the first week of Feb 2015. Kindly feel free for any queries.

Thanking you in anticipation.

Col Dinesh Nain

Chief Co ordinator

For Bhrastachar Virodhi Jan Andolan Nyas

Extention Office (H.Q. Ralegan Siddhi), New Delhi.

Mob: 09417057774 , Tel: 0172- 2520000,2520001,2520002,2520003,2520004

Forces seek new pension formula based on last pay

Ajay BanerjeeTribune News Service

New Delhi, January 12

The suggestions

• The memorandum says that 75% of last pay drawn should be the benchmark for calculating pensions for jawans
• In case of officers, 60%of last pay drawn be the benchmark
• The memorandum also says the Military Service Pay be fixed at 30% of basic pay for jawans and 15% of the basic pay for officers

Even as the retired veterans from forces are asking for one-rank-one pension (OROP), the ‘joint services’ memorandum submitted to the 7th pay commission has recommend a pension formula that is based on the last pay drawn. Sources told the Tribune that the memorandum submitted on behalf of the three services, the Army, the IAF and the Navy, to the commission has suggested that 75 per cent of the last pay drawn should be the benchmark for calculating pension for jawans. In case of officers, 60 per cent of last pay drawn be the benchmark for calculating pension. This demand has been put forward as the government is yet to implement the one rank-one pension (OROP). On its part, the government has accepted the OROP. Its modalities are being worked out over the past 12 months.
 The Rajya Sabha Petitions Committee chaired by Bhagat Singh Koshyari in December 2011 stated that clubbing the defence personnel with the civilian employees for pension purposes was not a considered decision. The committee laid down the definition of OROP: “It implies that uniform pension be paid to Armed Forces personnel retiring in the same rank with the same length of service, irrespective of their date of retirement, and any future enhancement in the rates of pension to be automatically passed on to the past pensioners. This implies bridging the gap between the rate of pensions of the current pensioners and the past pensioners and also future enhancements in the rate of pension to be automatically passed on to the past pensioners.” 
Three weeks ago, Defence Minister Manohar Parrikar had promised “OROP will be implemented....it has a lot of financial implications which are being worked out”. On the civilian side, the pension is 50 per cent of the last pay drawn and the same formula was applied for the forces in the last pay commission. The forces have argued that 50 per cent of the last pay drawn was more in tune for civilians. People in forces retire early and only 2 per cent of them make it to the rank of Major General or equal in the IAF and Navy that is at a par with Joint Secretary. 
The memorandum also says the Military Service Pay (MSP) amount is very small and suggested it be fixed at 30 per cent of basic pay for jawans and 15 per cent of the basic pay for officers. In case of disability pension, a minimum 10 years of service is required to be eligible. And if a person is injured critically within 10 years and cannot continue further in the forces, he cannot get pension. This 10-year period should be waived, the memorandum suggested.
Source:-http://www.tribuneindia.com/