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of <h1>Disability pension for Indian Armed Forces officers, including all elements, is fully tax-exempt according to the latest circular.</h1> The circular clarifies that the disability pension, comprising both the 'disability element' and 'service element,' received by disabled officers of the Indian Armed Forces is exempt from income tax. Despite previous instructions (Instruction No. 136 dated January 14, 1970), some field formations have inconsistently applied this exemption. The Board has re-examined the issue and reaffirmed that the entire disability pension remains tax-exempt. This instruction is to be communicated to all relevant officers to ensure uniform compliance.
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