Defence Minister Rajnath Singh on Monday said in Rajya Sabha that the Income Tax on Disability Pension has been waived off only for defence personnel who have been disabled during service.
Replying to a supplementary during Question Hour, Singh said on Disability Pension, the Defence Ministry has sought a clarification from the Finance Ministry on the matter.
"As far as the question of exemption on Income tax on Disability Pension is concerned, this exemption will be given to only such people who during the service period have become invalidated," he said.
He said it has been clarified that a circular by CBDT was only "clarficatory" in nature and all other circulars issued earlier are operative.
In reply to another supplementary, he said the government takes all possible steps in the interest of veterans and retired Army personnel.