Will look into tax on disability pensions, Rajnath tells LS
Defence Minister Rajnath Singh on Thursday assured MPs that he will look into the issue of taxing the disability pension of military personnel after furore over the decision in Parliament.
"I assure the House that I will look into the matter related to imposing tax on disability pension for military personnel," Rajnath Singh told the Lok Sabha after the opposition raised the matter during the Zero Hour.
Armed forces personnel suffering with any kind of disability during their service receive a separate disability pension. However, a June 24 circular by the Department of Revenue (under the Finance Ministry) had said: "Tax exemption will be available only to armed forces personnel who have been invalidated from service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired on superannuation or otherwise."
This made the veterans unhappy as it meant that those who retire with some disability after completing full course of service will not get any exemption.
Stressing that defence preparedness and the interest of armed forces personnel were topmost priorities of the NDA government, Rajnath Singh said that the Ministry was gathering all information and would inform the House with details. IANS