United Nations pension exemption under tax law extends to pension treated as salary under the statutory scheme.

Pension received from the United Nations was treated as exempt from Indian taxation because the United Nations (Privileges and Immunities) Act, 1947 gives the UN Convention the force of law in India and Article V, Section 18(b) exempts UN officials from tax on salaries and emoluments paid by the United Nations. As pension is included within "salary" under Section 17(1)(ii) of the Income-tax Act, 1961 and is chargeable under the head "Salary," the statutory immunity was held to extend to such pension. The tax question was therefore answered in favour of the assessee.

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Issues: Whether pension received from the United Nations was exempt from taxation under the United Nations (Privileges and Immunities) Act, 1947 read with the Income-tax Act, 1961.

Analysis: The 1947 Act gives the Convention on the Privileges and Immunities of the United Nations the force of law in India. Under Section 18(b) of Article V of the Schedule, officials of the United Nations are exempt from taxation on salaries and emoluments paid by the United Nations. Section 17(1)(ii) of the Income-tax Act, 1961 includes pension within the definition of salary, and pension is chargeable under the head Salary. On that construction, pension received from the United Nations falls within the expression salary for the purpose of the statutory immunity.

Conclusion: The pension received from the United Nations was exempt from taxation, and the question was answered in favour of the assessee.

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