Sixty-four ex-servicemen have approached Supreme Court against a CBDT circular stating that disability pension of those veterans who have not been invalidated out of forces due to the injuries, would be taxed.
The veterans include 54 officers and 10 jawans. The case is now likely to be listed for hearing next week, said lawyer Colonel I S Singh (Retd) he had filed the petition before the Supreme Court.
The Central Board of Direct Taxes (CBDT), in its circular issued last month, had stated that "income tax exemption" would continue to be available for all Army, Navy and IAF personnel who have been "invalidated out of service on account of bodily disability attributable to or aggravated by such service".
But, it added, such tax exemption would not be available to personnel "who have been retired on superannuation or otherwise".
This, in effect, means the personnel with some disability who retire after full service in the normal course will no longer get tax exemption on their disability pensions.
There was discontentment mainly among the veterans of the three services over the issue.
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