DefMin to banks: Don’t cut tax on disability pensions

New Delhi: Defence ministry has directed that banks must not deduct income tax on disability pension of retired Army personnel till the issue is decided by Supreme Court. “Conscious of anguish to pensioners on lumpsum recovery of tax on disability pension, banks advised to refund and stop recovery,” said Army in a tweet. It said that disability pension to veterans in need of medical assistance is being ensured.

The defence ministry has directed that banks must not deduct income tax on disability pension of retired Indian Army personnel till the issue is decided by Supreme Court.

“Conscious of anguish to pensioners on lumpsum recovery of tax on disability pension, banks advised to refund and stop recovery,” said the Indian Army in a tweet. It said that disability pension to veterans in need of medical assistance is being ensured.

Last week, many disabled veterans had expressed anguish that for the month of February they had received only token amount as pension and a large percentage deducted as tax.

The banks had started deducting income tax on disability pension despite a stay on the issue by Supreme Court.

Defence ministry has now directed the defence accounts department to withdraw circular directing banks to deduct income tax from disability pension till the issue is decided by the Supreme Court.

Many veterans had taken to Twitter to complain that they had received `100 as pension.

“The pension received for this month for a family of four is Rs 100. Am sure the nation takes pride in sending it’s disabled soldiers on streets. Sheer arrogance and incompetence of the system,” said a tweet. was