DP exempt

Instruction No 136 F.No. 34/3/68-IT(AI) Govt of India Central Board of Direct Taxes  New Delhi, dated the 14th Jan 1970 From : Shri S N Nautial Secretary, CBDT To: All Commissioners of Income Tax Subject : Exemption – Service and Disability Element of Disability Pension granted to a disabled officer of the Indian Army – whether exempted from Income Tax.

Reference is invited to the Board’s Letter F No 42/9/59-IT(AI), dated the 5th Sept 1960 on the above subject wherein it was mentioned mentioned that in the cases falling under Item (29) (29) of Fina Finance nce Dept Depttt Noti Notifi fica cati tion on No 878878-F F (Inc (Income ome Tax) ax) dated dated 21-3 21-3-1 -1922 922,, the the ‘disability element’ of the disability pension received by an officer of the Army will only  be exempted from tax and that the ‘service element’ will be subjected to tax. 2. On reconsiderat reconsideration ion of the matter, matter, in consultatio consultation n with the Ministry Ministry of Law, Law, the  board are advised that item 29 of the notification does not differentiate between types of   pensions. Accordingly in the cases falling under item 29 of the above notification, entire disability pension will be exempted from income-tax. 3. The above instru instructions ctions may may be brought brought to the notice notice of all all assessing assessing officer officerss in your charge.

Yours faithfully, faithfu lly, Sd/(S N Nautial) Secretary CBDT

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 Income-Tax All Directors General of Income-Tax Subject : Exemption from Income Tax to disability pension, i.e., “disability element” and “serv “service ice element element”” of a disabl disabled ed offic officer er of the Indian Indian Armed Armed Forces Forces – Instru Instructi ctions ons regarding Sir,

References References have been received in the Board regarding regarding exemption from Income Tax to disabi disabilit lity y pension pension,, i.e., i.e., “disab “disabili ility ty element element”” and “serv “service ice elemen element” t” of a disabled officer of the Indian Armed Forces. 2. It appears appears that field formations formations in certain certain cases are not uniformly uniformly allowing allowing th disability pension inspite of Board’s Instruction No 136 dated 14 January 1970 (F  No 34/3/68-II(AI) ). 3. The matter matter has been re-examine re-examined d in the Board Board and it has been been decided decided to reiter reiterate ate 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 may be brought brought to to the notice notice of all all officer officerss working working under under you.

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