United Nations pension exemption extends to official pension payments treated as salaries and emoluments under the immunity schedule.

Pension paid by the United Nations Joint Staff Pension Fund to an official was held to fall within the exemption for salaries and emoluments under section 18(b) of article V of the Schedule to the United Nations (Privileges and Immunities) Act, 1947. The court reasoned that pension is treated as part of salary under the Income-tax Act for computation under the head "Salaries", and in any event the term "emoluments" is wide enough to include pension. Because the Schedule has overriding effect, the pension paid by the United Nations to its official was treated as exempt from tax, and the reference was answered in favour of the assessee.

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Issues: Whether pension received by an official of the United Nations Joint Staff Pension Fund is exempt from tax under section 18(b) of article V of the Schedule to the United Nations (Privileges and Immunities) Act, 1947.

Analysis: The exemption under section 18(b) of article V extends to salaries and emoluments paid by the United Nations to its officials. The Income-tax Act treats pension as included within salary for computation under the head "Salaries", and in any event the expression "emoluments" is wide enough to cover pension. The Schedule to the United Nations (Privileges and Immunities) Act, 1947 has overriding effect and therefore the pension paid by the United Nations to its official falls within the exempt category.

Conclusion: The pension is exempt from taxation and the question referred was answered in the affirmative, in favour of the assessee.

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