INCOME TAX EXEMPTION - DISABILITY

In terms of  DSR Para 179 and 173 and copy of Hon SC' judgement dt 31.03.2011 in the case of Maj Buttar it would be seen that all ranks retiring with disability of 20% and above are deemed to have been "Invalidated out" of service and hence would come under Tax exemption.

                                                   DSR PARA 173

                                                         DSR PARA  179

                                                         THE JUDGEMENT


REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION  CIVIL APPEAL NO. 5591 OF 2006
K.J.S. Buttar                                              ..                 Appellant
-versus-
Union of India and Anr.                            ..                 Respondents
J U D G M E N T

Markandey Katju, J.
1. This appeal has been filed against the judgment and order dated 13.9.2004 in C.W.P. No.20447 of
2002 of the High Court of Punjab and Haryana at Chandigarh.

2. Heard learned counsel for the parties and perused the record.

3. The appellant is an ex-captain in the Indian Army, who was commissioned on 12.1.1969. During the course of his service, the appellant suffered serious injuries of a permanent nature and was

invalided out of service. The Release Medical Board held on 3.1.1979 viewed his injury ‘gun shot wound left elbow’ as attributable to military service and assessed the degree of disability at 50% and the appellant was released from service in Low Medical Category on 10.4.1979. Accordingly, the appellant was granted Disability Pension w.e.f. 26.7.1979.

4. The appellant filed a writ petition in the High Court claiming following benefits under Circular and Notification issued by the Ministry of Defence, Union of India from time to time :

           “a) War Injury Pension w.e.f. 1.1.1996 in terms of

 Ministry of Defence letter dated 31.1.2001;

            b) Treating the disability at 75% instead of 50% w.e.f. 1.1.1996 as per Ministry of Defence letter dated 31.1.2001;

              c) Grant of service element for full 10 years of service instead of 2 years; and 

            d) Revision of the rates of the disability pension w.e.f. 1.1.1996 in terms of the letter dated

31.1.2001.

It is pertinent to state that the Ministry of Defence letter dated 31.1.2001 had revised the rates pursuant to recommendations of Fifth Pay Commission.  ......   READ MORE  >>>>>

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                         REAL AUTHORITY LETTER 

MINISTRY OF FINANCE INSTRUCTIONS ON INCOME TAX EXEMPTION ON DISABILITY :-       Use your mouse cursor to move document up and down the window below by holding left click button of your mouse as pressed.