INCOME TAX INSTRUCTION NOnbsp22001 nbspDated July 2 2001 Subject nbspExemption from income tax to disability pension ie quotdisability elementquot and quotservice elementquot 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 ie quotdisability elementquot and quotservice elementquot 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 Boards Instruction No 136 dated 14th January 1970 FNo 34368ITA1 3 The matter has been reexamined in the Board and it has been decided to reiterate that the entire disability pension ie quotdisability elementquot and quotservice elementquot 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 FNo 2005100ITAI BL Sahu Officer on Special Duty ITAI nbsp