The Central Board of Direct Taxes (CBDT) has clarified that the income tax exemption under the Act would be applicable to all officers and jawans of armed forces.
The Board has issued a circular regarding the exemption of service element and disability element of disability pension granted to disabled personnel of armed forces who have been invalided on account of disability attributable to or aggravated by such service.
This is in the light of representations requesting to clarify whether the exemption is applicable only to the disabled officers of Armed Forces or all disabled Armed Forces Personnel (i.e . including officers and Jawans).
The circular said that representations have also been received to clarify as to whether the Income Tax exemption would be limited to only such disabled Armed Forces Person who are invalided out of service due to disability attributable to or aggravated by military service condition or to even those who retire after full service with some disability.
“The matter has been examined in the Board. The notification no. 878-F dated 21.03.1922, provides income tax exemption to all members of Armed Forces who have been invalided for naval, military or air force service on account of bodily disability attributable to or aggravated by such service. Thus, the income-tax exemption under above clause would be available to all armed forces personnel (irrespective of rank) who have been invalided for such service on account of bodily disability attributable to or aggravated by such service,” the circular said.Subscribe Taxscan AdFree to view the Judgment