INDIA: No Income Tax On Armed Forces Disability Pension

NEW DELHI (The Times of India), December 20, 2007: The Finance Ministry of Government of India announced today that there will be no deduction of income tax on payment of disability pension to the beneficiaries from the Armed Forces. "Banks have been advised to issue suitable instructions to all their pension disbursing branches that income tax should not be deducted from the disability pension paid to the pensioners of the Armed Forces," a Finance Ministry statement issued here said. The Reserve Bank has issued instructions to all agency banks to strictly adhere to the provisions of the Defence Pension Payment Instructions, 2005, and not to deduct any income tax on disability pension to the ex-servicemen. Copyright © 2007 Times Internet Limited.