Defence Minister Rajnath Singh has clarified that “disability pension" given to a section of retired military personnel shall continue to be exempt from income tax, unless the exemption is removed through a specific notification.
The minister in a letter to Trinamool Congress MP Mahua Moitra referred to the issue raised by her in Parliament under Rule 377 seeking a review of the decision to “remove income tax exemptions on disability pension" for those service personnel who despite being injured continue duties until retirement.
Moitra posted the letter on X in which the Defence Minister says “taking note of the concern raised regarding the issue…the amendments notified shall take effect on or after such date as may be notified by the Central Government".
“Pending such notification, the entire disability pension, that is disability element and service element, of disabled officer of the Indian armed forces shall be exempt from income tax,” the letter said.
Moitra welcomed Rajnath’s clarification and thanked him for what she described as his “empathy" towards disabled defence personnel. She expressed hope that officials in the Finance Ministry would show similar sensitivity and refrain from implementing the proposed changes.
In March, a Parliamentary Standing on Defence recommended that a proposal to impose income tax on pensions for disabled soldiers need to be “examined" and reconsidered.
