NE NEWS SERVICE
NEW DELHI, MARCH 2
The raging controversy over the government’s decision to tax disability pension of soldiers has reared its head once again, with many disabled veterans left stunned to receive only token sums as pension credited to their bank accounts for February.
Veterans said the Principal Controller of Defence Accounts (Pensions) had issued a circular on February 20 for “necessary action” on the June 2019 order by the finance ministry/Central Board of Direct Taxes that held disability pension of all military personnel would now be taxed unless they had been forced or “invalidated” out of service prematurely due to injuries.
“This amounted to asking various banks to deduct income tax with arrears from disability pensions despite the SC ordering ‘status quo’ on the matter till it hears it. Consequently, State Bank of India has deducted huge retrospective TDS (tax deducted at source) from the pensions of disabled veterans… many have got only Rs 100 as pension for February,” said a veteran, The Times of India reported.
The famous ‘blade runner’ Major DP Singh (retd) added, “I am not personally affected since I was invalidated out as a battle casualty. But it’s so painful to see my fellow soldiers who gave their youth to the nation, including warriors like Lt-Gen Vijay Oberoi and Maj Gen Ian Cardozo who lost their limbs but continued in service, to be treated like this in their old age. The nation should be indebted to them.”
While the defence establishment refused to comment on the issue because it was “sub judice”, sources said senior defence ministry and Army officers had contacted SBI over the weekend to resolve the issue. “The issue will be clarified in the next few days,” said a source.
As was reported earlier by The Times of India, the NDA government had faced flak from veterans for the CBDT order issued on June 24 2019. The Army headquarters had initiated the move because it felt “broad banding and higher compensation awarded for disability with tax exemption” has led to a significant rise in personnel seeking it even for lifestyle diseases.
