Misuse of benefit of Disability Pension word by including service pension element in it by. Normal pensioners– Col Ranbir Lamba

In this connection it is stated that as per Regulation-173 of Pension Regulations for the Army Part-I (1961) the disability pension will be granted to those individuals who has been invalided outfrom service on account of a disability which is attributable to or aggravated by military service. The disability pension consist of two Element  i.e. Service Element and Disability Element.
It is also mentioned that as per Regulation-179 of Pension Regulations for the Army Part-I (1961), the disability element will be admissible in discharge cases, which will be in addition to service pension.
Further, it is stated that as per clarification given by department of Revenue CBDT letter dated 02.07.2001, the exemption from income tax is to be allowed on both the element of disability pension i.e. service element and disability element.

As per the clarification given in the ibid CBDT letter, it reveals that the exemption in income tax is allowed only in invalided out caseswhere the individual is in receipt of service element and disability element
not for those who have been discharged from service with disability and in receipt of service pension and disability element.
In view of the above, the stand of the CBDT is very much clear and it is up to the PDA’s level to deduct the income tax properly bifurcating both the categories
i.e. invalided out and discharge cases.
Sd/-
Sr.AO (Pen)
No. Gts/Tech/0182/E-mail/II
Dated: January 05, 2016
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NOTE
1] KINDLY NOTE THE INCOME TAX EXEMPTION IS APPLICABLE ONLY TO INVALIDATED CASE.
2] PPO / DISCHARGE BOOK SHOULD HAVE A REMARK INVALIDATED OUT FOR INCOME TAX EXEMPTION.
3] IN PPO/DISCHARGE BOOK IF THE REMARK INVALIDATED OUT DOES NOT EXIST THEN THEY ARE NOT EXEMPTED FROM INCOME TAX & LIABLE FOR TDS ,
4]IN CASE PDA IS NOT DEDUCTING TDS THEN ITS IS YOUR DUTY TO INFORM TO DEDUCT TDS ON BOTH SERVICE & DISABILITY PORTION.
Onus is on pensioner to pay TDS on pension + disability portion along with Cess. It is duty of pensioner to inform PDA to deduct TDS
On service + disability element ( Non invalidated Pensioners with disability).
On similar lines as they ask exemption of TDS on savings.
5] AS DISABILITY EXEMPT IS NOT ACROSS BOARD THEN PAY TIMELY TAXES ELSE IT DEPARTMENT CAN RECOVER TAXES WITH 12% INTEREST WITH FINE .\FROM YOU / HEIRS[ IN CASE ONE IS NOT ALIVE]
THE 10 YEAR PERIOD CAN BE RECOVERED IN ONE GO BY IT DEPARTMENT
Kindly note Income tax exemption is not across the board
But is for only those who have been invalided out pensioner
Normal discharged pensioner have to pay IT & deduction of TDS is mandatory
On both service + disability element .
Else Income Tax office can serve notice for payment of TDS @ 12% + fine with recovery on arrears too
Lump sum arrears have been paid
Take care
PAY IN TIME & HAVE SOUND SLEEP
COL RANBIR LAMBA[ ONE MAN ARMY]