INCOME TAX

INSTRUCTION NO. 2/2001

 Dated: July 2, 2001

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.

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 in spite of Board's Instruction No. 136 dated 14th January, 1970 [F.No. 34/3/68-IT(A.1)].

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 bought to the notice of all the officers working under you.

[F.No. 200/51/00-ITA.I.

(B.L. Sahu)
Officer on Special Duty (ITA.I)