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Defence Ministry to Look into Issue of Tax on Disability Pension, Says Rajnath Singh

The defence minister said that in the last 40 years people were kept in the dark as far as 'One Rank One Pension' is concerned and were misled 'but our government brought it into force'.

Ahona Sengupta |

Updated:June 27, 2019, 3:50 PM IST
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Defence Ministry to Look into Issue of Tax on Disability Pension, Says Rajnath Singh
Rajnath Singh pays tributes to those who lost their lives in the AN-32 crash.
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New Delhi: The issue of tax on disability pension for military personnel was Thursday raised in the Lok Sabha by Congress leader Adhir Ranjan Chowdhury, with Defence Minister Rajnath Singh saying his ministry will look into the issue.

As soon as Chowdhury raised the issue during the zero hour, Congress members rushed to the well and raised slogans like "Sena ko nayay do' (Give justice to Army) and 'sena ke naam pe vote mangana band karo' (stop asking votes in the name of Army).

With Congress members creating a ruckus in the House, Speaker Om Birla said they were disturbing new members which was not right.

Chowdhury said new members should be given chance to speak again and again.

The Congress leader said that in June CBDT came out with a circular which said disability pension will be taxable for military personnel. This, he said, was very sad.

Replying to him, the defence minister said, "I will look into the issue. The ministry is gathering information and will get back with details to the House".

The defence minister also said that in the last 40 years people were kept in the dark as far as 'One Rank One Pension' (OROP) is concerned and were misled "but our government brought it into force".

Armed forces personnel who suffer any kind of disability due to their service receive separate disability pension.

Sources had earlier said that disability pension will be taxable for military personnel who superannuated under normal circumstances.

Pension will be non-taxable only for those personnel who have retired due to any kind of disability, they had said.

Citing a Finance Ministry circular, dated June 24, the sources had said, "Tax exemption will be available to armed forces personnel who have been invalidated from the service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired or superannuated or otherwise."

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