SECTION 10(10A) OF THE INCOME – TAX ACT, 1961 – PENSION EXEMPTION FROM INCOME-TAX TO DISABILITY PENSION, I.E., “DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES
INSTRUCTION NO. 2, DATED 2-7-2001
1. Reference have been received in the Board regarding exemption from income-tax to disabilitypension, i.e. “disability element” and “service element” of a disabled officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not uniformly allowing disability, pension in spite of Board’s 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 decided to reiterate 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.
Download Notification – Instruction No 136 F No 34/3/68/IT(AI) Dated 14th Jan 1970 and Instruction No 2/2001 dated 02.07.2001