Compensation for disability with tax exemption has led to rise in personnel seeking disability, says Army

Responding to the controversy over taxing of disability pension, Indian Army on Tuesday said that broad-banding and compensation awarded for disability with income tax exemption has led to a rise in personnel seeking disability, even for lifestyle diseases.

"Over the years broad-banding and compensation awarded for disability with income tax exemption have led to a rise in personnel seeking disability, even for lifestyle diseases. The trend is worrisome and that too when the security challenges to the nation are on the rise," the Army said in a tweet.

Asserting that this trend needs to be checked, the Army in its statement said, "The trend if not checked at this stage, is a cause for worry as Army cannot have a large number of personnel with medical disabilities in the rank and file when the security challenge to the nation is on the rise."

Army said that it is concerned for all personnel who are invalidated out of service in combat conditions or otherwise and need additional support and discourages those who seek financial gains through their disabilities.

The Army also commended Major General (retd.) Ian Cardozo who amputated his own leg during 1971 war, saying that he is a highly respected gallant soldier of 1971 war whose deeds exemplify the true ethos of soldiering.

"As a living legend he has never let disability come between profession and military rigours," Army said.

According to a Finance Ministry notification, tax exemption will be available only to armed forces personnel who have been invalidated from service on account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired on superannuation or otherwise.

On June 27, Defence Minister Rajnath Singh had assured the Lok Sabha that he would look into the changes brought in a tax on a disability pension for military personnel.