Data analytics showed disability pension benefits misused: CBDT chairman

The latest circular which clarified the eligibility for availing disability pension by armed forces personnel was issued after data analytics found that the provision meant for the needy was being misused, the CBDT chairman has said.

Taking to PTI, CBDT chief P C Mody said the circular issued on June 24 was not a new directive but only in clarification to the stated policy.

"We have full respect for the soldiers working in the armed forces. If there is any disability, then this provision is there but what happened was that over a period of time, the data analytics showed that many were claiming it and that it was being misused.

"To stop this, a clarificatory circular was issued. If disability happens due to action, then this pension is untaxed as it has been," the CBDT chief said.

The Central Board of Direct Taxes (CBDT), which frames policy for the Income Tax Department, had issued circular no 13 of 2019 stating "such 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."
A group of disabled war veterans of these forces had expressed their resentment at the move, saying, "Disability compensation is not only limited to war or operation disabilities, but is also available to all other medical conditions that arise while a person is serving in the military."