Rajnath Singh Assures Continuation of Income Tax Exemption on Disability Pension
Defence Minister Rajnath Singh has clarified that the disability pension granted to a segment of retired military personnel will continue to be exempt from income tax, unless the exemption is explicitly revoked through a specific notification. This clarification came in response to a query raised by Trinamool Congress MP Mahua Moitra in Parliament under Rule 377.
Moitra Raises Concern Over Proposed Removal of Exemption
Mahua Moitra had sought a review of the decision to remove income tax exemptions on disability pension for service personnel who, despite sustaining injuries, continue their duties until retirement. In her letter to the Defence Minister, she expressed concerns about the potential financial burden on disabled soldiers.
Defence Minister's Letter Provides Assurance
In his letter to Moitra, Rajnath Singh stated, “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.” He further emphasized, “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.”
Moitra Welcomes Clarification, Urges Finance Ministry Sensitivity
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.
Parliamentary Panel Recommendation
In March, a Parliamentary Standing Committee on Defence recommended that a proposal to impose income tax on pensions for disabled soldiers needed to be examined and reconsidered. This recommendation highlighted the ongoing debate over the tax treatment of disability pensions for armed forces personnel.
