Is defence pension exempt from income tax ?

Hey,

I have unbounded respect for those who serve our nation in the army, navy or any other force. I genuinely do believe that these officers should be thanked for their sacrifices and services via schemes. The government has already launched the One Rank One Pension (OROP) scheme. I will tell you about defence personnel exempt from income tax as well. 

Pension received from defence is taxable or not?

For service rendered by veterans, the government gives them pension post-retirement. Under the OROP scheme, there hasn't been any news about pensions not being taxed. Defence pensions continue to be taxed. 

Though there are a few exceptions to this rule, disability pensions among a few other types of pensions aren't taxed. To be exact, only those military personnel who have been ‘invalidated’ from service due to disability will have income tax exemption. 

Is defence pension exempt from income tax?

There are almost 25 lakh defence pensioners in the country and for income tax calculation, the defence pension given to them each year is treated as salary. Only when the commuted pension is paid to the family of the commuted person, there isn't any tax levied on the commuted personnel. 

I hope you now have a good answer on defence personnel exempt from income tax.

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Let’s resolve your doubt about

is army pension exempt from income tax

. Yes, defence pensions in India are generally exempt from income tax under certain conditions.

Is Army Pension Exempt from Income Tax in India?

The military pension exempt from income tax is provided under Section 10(19) of the Income Tax Act, 1961. According to this section, any pension received by an individual who has served in the armed forces of the Union or the paramilitary forces is exempt from income tax.

However, there are certain exceptions and conditions to this exemption:

• The exemption applies to the pension received by the individual who served in the armed forces. Family pension received by the spouse or children of deceased armed forces personnel is also exempt from income tax under Section 10(19).

• Disability pension received by armed forces personnel or their dependents is also exempt from income tax.

• If a portion of the pension is commuted (i.e., received as a lump sum), only the uncommuted portion of the pension is exempt from income tax. The commuted portion is subject to tax as per the applicable tax rules.

• While the defense pension itself is exempt from income tax, any other income earned by the individual, such as interest income, rental income, or income from investments, is taxable as per the normal provisions of the Income Tax Act.

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is army pension exempt from income tax

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