8th CPC panel meets injured soldiers amid disability pension tax row

Pune: A high-powered delegation of the 8th Central Pay Commission, led by Justice (retd) Ranjana Prakash Desai, visited key military establishments in Pune, including the Artificial Limb Centre, the National Defence Academy and the Indian Air Force Station to gain firsthand insight into the experiences of disabled soldiers and cadets.

The Artificial Limb Centre (ALC) in Pune is among the country’s premier military rehabilitation institutions and has played a key role in treating battle casualties and personnel with life-altering injuries for decades.

The visit comes at a time when ex-servicemen associations and disabled veterans have raised concerns over the Union government’s proposed move to restrict income tax exemption on disability pensions in the armed forces.

Under the new provision announced in the Union Budget, armed forces personnel receiving a disability pension after ‘superannuation’ may no longer be eligible for complete income tax exemption.

The exemption is proposed to remain applicable only to those who are ‘invalidated out of service’ due to bodily disability. The visit, however, has assumed significance amid these concerns.

The delegation interacted with officers and soldiers undergoing treatment and rehabilitation for amputations and spinal cord injuries.

Speaking to TOI, Col Gaurav Dutta, former blade runner, said the visit by the Pay Commission members was important in helping policymakers understand the issue beyond technical definitions.

“The government, in the Budget, has announced that armed forces personnel receiving disability pension after superannuation will no longer be entitled to income tax exemption. Only personnel who were invalidated out of service due to bodily disability will now be entitled to the exemption. The Income Tax Department is yet to issue a notification in this regard,” Dutta told TOI.

“There are veterans who have taken home loans, education loans, etc., based on the expected tax-exempt pension and will be severely impacted. This will have huge financial ramifications for them. Therefore, the current visit was crucial to understand how injured and disabled soldiers go through in this phase and why disability pension is necessary,” he added.

Veterans have argued that the distinction between personnel invalidated out of service and those who continue serving despite disabilities before superannuating is unfair and insensitive to the realities of military life.

“Several disabled soldiers continue in service despite severe injuries, often taking up instructional, administrative or staff roles after rehabilitation. These personnel should not be penalised for choosing to remain in service and contribute further to the armed forces,” said another senior veteran on the condition of anonymity.

Military veterans believe such engagements could influence future recommendations on pensions, rehabilitation support and welfare measures for injured armed forces personnel.

“The cadets at the NDA also get injured during the training. Some of them even get medically boarded out. Such issues need to be dealt in a sensitive manner so they will get rehabilitated in a proper way,” said Col Vinay Dalvi (retd).