The Finance Ministry has asserted that disability pension will be tax free only for those personnel who were forced to leave service due to disability suffered while on duty.
The pension will be not be tax-free for those defense forces personnel who retired from their services or attained superannuation.
Such tax exemption will be available only to armed forces personnel who have been invalided from service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired on superannuation or otherwise,” said a circular issued by finance ministry.
The government circular is applicable to personnel of all ranks from Army, Airforce and Navy.
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