United Nations pension exemption from income-tax confirmed for retired officials under the Income-tax Act.

Pension received after retirement from the United Nations Joint Staff Pension Fund was treated as exempt from income-tax under the Income-tax Act, 1961. The analysis states that the exemption for salaries and emoluments paid by the United Nations under the United Nations (Privileges and Immunities) Act, 1947, had already been construed by the Karnataka High Court, and the Board accepted that view in a circular extending exemption to pension received by former UN officials because pension falls within section 17 of the Income-tax Act. The conclusion recorded is that such pension remained exempt and the reference was answered in favour of the assessee.

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Issues: Whether pensionable remuneration received after retirement from the United Nations Joint Staff Pension Fund was exempt from taxation under the Income-tax Act, 1961.

Analysis: The exemption available to salaries and emoluments paid by the United Nations under the United Nations (Privileges and Immunities) Act, 1947, read with the relevant schedule provisions, had already been construed by the Karnataka High Court. The Board accepted that view and issued a circular stating that pension received by erstwhile United Nations officials would also be exempt from income-tax, since salary under section 17 of the Income-tax Act, 1961 includes pension. The references were therefore governed by the same legal position.

Conclusion: The pension received by the assessee from the United Nations Joint Staff Pension Fund was exempt from income-tax, and the question was answered in favour of the assessee and against the Department.

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