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Government move to roll back disability pension tax on retired soldiers welcomed

Posted in General

August 13, 2019

In the face of hurt and outraged reactions, the government of India
has taken back its recent order imposing tax on the pension given to soldiers
with disabilities.

Disability pensions in the Indian armed forces will continue to be exempt
from tax. Union Defence Minister Rajnath Singh has ordered
senior government officials to roll back an earlier order making disability
pension taxable in the face of widespread criticism and outrage from many
quarters.

However, Singh has also asked the three forces to devise a mechanism so that
instances of misuse are not so rampant. The reason for the earlier order was
that some defense personnel were misusing the benefit. It was alleged that
some senior officers were faking their disabilities and filing pension claims
as the disability pension is as much as 20% to 50% higher than a regular
pension.

It was in June this year that an order was circulated by the Central
Board of Direct Taxes
stating – “Soldiers with disability who retire
after full service will no longer get tax exemption on their disability
pension”.

The move led to an uproar in Parliament and many retired soldiers like
Major General Ian Cardozo, the first war disabled Indian
soldier, expressed a deep sense of shock and disappointment over the move.
Major Cardozo has been disabled in the 1971 war with Pakistan but continued
to serve in the Army after the incident.

Speaking to the media he said, “Personnel put country first, their soldiers
next and themselves last. We will continue to fight but is this right. Will
we get right type of people who understand that if I am disabled in battle or
if I die in battle, people left behind will be taken care of the country? Is
it fair, should we not be taken care of?”

Many argued that a few personnel faking disability should not deprive genuine
cases.

The rollback has been appreciated by many former soldiers who took to social
media to give thanks..

An Excellent, Sane & Logical Reversal! Compliments & Gratitude to
Raksha Mantri on Fielding for Disabled. – Lt General Gurmit
Singh

Another retired soldier said, “Thank you for all that you did for restoring
Tax exemption on Disability Pension. Overwhelmed by your relentless efforts.
Nation needs your service.”.

Source: https://newzhook.com/story/government-rolls-back-order-taxing-disability-pension-of-soldiers

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