Chennai Army Veterans Voice Strong Opposition to Proposed Disability Pension Tax Exemption Restriction in Union Budget
Army veterans based in Chennai have expressed firm opposition to a proposed restriction on tax exemption for disability pensioners, as introduced in the recent Union Budget. The financial bill outlined in the budget seeks to limit tax exemption solely to armed forces personnel who are invalided out of service due to bodily disability, while excluding those who retire on superannuation, even if their disabilities are officially certified as attributable to or aggravated by military service.
Key Details of the Proposed Change
This significant policy shift is scheduled to take effect from April 1, 2026. The move has sparked considerable concern among veteran communities, who argue that it undermines the principles of fairness and recognition for service-related injuries.
Retired Colonel J John Prince, secretary of the Armed Forces Veteran Officers Association in Chennai, emphasized the practical implications. "A disability does not change its nature merely because the soldier continued to serve despite it. This will significantly reduce the post-retirement income of disabled soldiers, especially amid rising healthcare costs," he stated.
Impact on a Large Number of Veterans
Colonel Prince further highlighted that a majority of disabled pensioners retire on superannuation rather than through invalidation, meaning the proposed restriction would affect a substantial number of veterans. "The revenue gained by this move is very marginal, but it will adversely affect the morale of the soldiers," he added, calling for the retention of income tax exemption on disability pensions for all armed forces personnel, regardless of their mode of retirement.
Veterans' Perspectives on Fairness and Dignity
Retired Lieutenant Colonel Sada S Peter, who served as a battery commander of the Rocket Regiment during the Kargil War, provided a poignant perspective. "A disability pension is compensation for a lifelong physical limitation. Taxing it for those who reached retirement age will create two classes of disabled soldiers: those who left early and those who stayed to serve despite their disability, treating the latter with less dignity," he explained. He termed the bill as regressive and contrary to the ethos of the military.
Historical Context and Legal Precedents
Veterans also pointed to historical context, noting that a previous attempt to restrict tax exemption for disability pensions was stayed by the Supreme Court. This legal precedent underscores the contentious nature of such policy changes and the potential for judicial review.
The opposition from Chennai's army veterans underscores broader concerns within the military community regarding the treatment of disabled personnel and the financial security of those who have served the nation with dedication and sacrifice.
