Wednesday, February 18, 2009

Disability Pension exempted from Income Tax completely

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INSTRUCITON NO 2/2002 F. No. 200/51/99-ITAJ
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes


New Delhi. The 2nd July, 2002.

To,

All the Chief Commissioners of Income - tax,
All the Directors General of Income-tax,


SUBJECT: Exemption from income tax to disability pension “disability element” and “ service element” of a disabled officer of the Indian Armed Forces – Instructions



Sir,

1. Reference have been received in the Board regarding exemptions income tax to disability pension, i.e. “ disability element” and “service element” of a disable officer of the Indian Armed Forces.

2. It appears that field formations in certain cases are not unitary allowing disability pension in spite of Boards – Instruction No 136 dated 14th January, 1970 [F.No.34/3/68-IT(A.I)

3. The matter has been re-examined in the Board and It has been decet to reiterate that the entire disability pension, i.e. “disability element” and “service element” of a disabled officer of the Indian Army Forces contains be exempt from income tax.

3. This may be brought to the notice of all the officers working under




Yours faithfully

8 comments:

Unknown said...

The quoted letter is dated 2nd Jul, 2001 and signed by Mr B L Sahu, OSD (ITA-I)

Anonymous said...

May I know the section in Income tax Act that allows this deduction?

Thanks

HB Bhatt said...

As per this instruction officers of armed forces are exempted from paying income tax on disability pension, but what about PBOR,s, are PBOR,s not covered by this instructions ?? Can any one clarify on this subject.

Unknown said...

sir,
According to Instruction no 2/2002 F. No.200/51/99-ITAJ,income tax exemption only for officers or both, officers and pbors.
If it is only for officer then what instruction for PBORS.
Please clarify this matter.

Unknown said...

sir,
According to Instruction no 2/2002 F. No.200/51/99-ITAJ,income tax exemption only for officers or both, officers and pbors.
If it is only for officer then what instruction for PBORS.
Please clarify this matter.

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