Many disabled pensioners received a meagre sum of Rs 100 or less as pension for the month of February as the State Bank of India deducted income tax with arrears. (Representational Image)
Defending the withdrawal of income tax exemption to recipients of disability pension, former General Officer Commander-in-Chief of Western Command, Lt Gen Surinder Singh (retd) said all Army Commanders were of the unanimous opinion that certain harsh measures were required to stem the increasing number of disability claims in the Army.
Speaking to The Indian Express, Singh who retired in July 2019, and is presently serving as the Chairman of Punjab Public Service Commission, said that there was a consensus among the Army and formation Commanders that certain urgent steps were necessary to stop the urgency in seeking disability pension due to income tax benefits attached with it.
The issue has taken centre stage in discussions within military circles, especially after many disabled pensioners received a meagre sum of Rs 100 or less as pension for the month of February as the State Bank of India deducted income tax with arrears.
This was done after the Principal Controller Defence Accounts (Pensions) issued a circular on February 20 for “necessary action” on government orders of July 2019 regarding withdrawal of income tax exemption on pensions of disabled pensioners who had retired from service and not been invalided out due to disability.
“It would be wrong to blame only one individual for this move as is being done in many forums. The issue came up in more than one occasion and it was deliberated thoroughly. There was discontent among fit officers in the Army who were seeing that certain officers were claiming disability pension on various pretexts while they were fit for many adventure activities. Letters were written to Army Commanders, including me and the Chief of Army Army Staff, where officers questioned the rationale for staying fit,” the former Army commander said.
EXPLAINED: Why disability pension tax upsets veterans
Singh also took to Twitter to amplify his views and in a series of tweets, he wrote, “The withdrawal of income tax relief to soldiers who superannuated with disability pension is a correct step by Army to check the uncontrolled lure for disability by army personnel leading to substantial part becoming unfit for war.”
He further said, “The affected people will make it an emotive issue. For every disability pensioner demanding a rollback, there are three others who support the move. The policy had full support of all Army Commanders. Operational casualties will always be cared for by the Army in many ways.”
In his last tweet of the thread, he added, “Army personnel raising a hue and cry must first make a full disclosure whether they are claiming disability pension before opposing Army. This issue was widely decided by the army. Some action needed to be taken.”
The General also told The Indian Express that the data pertaining to disability pension which had been put up to the Army Commanders showed that the availability of personnel in units would be severely affected if some urgent action was not initiated.
“I know that my remarks would raise a lot of hue and cry but someone has to set the record state. Things were so serious that we had to court-martial a General for falsely claiming disability benefits,” he said.
However, Maj Navdeep Singh, who was also a part of the MoD’s Committee of Experts for reducing litigation, said he was concerned with demonising of disabilities than with taxation. “I am more concerned with demonising of disabilities than with taxation. All militaries in the world have seen a rise in disabilities due to stress and strain of service arising from separation from family, inability to cater to domestic commitments, regimented and barracked lifestyle, curb of freedoms, hostile terrain etc. Rather than the monetary aspect, we should be concentrating on improving the health profile of military personnel and making their lives stress-free.”
Ministry of Defence says no IT recoveries to be made
In view of the IT deductions made in the pensions for the month of February 2019, the Ministry of Defence (Finance) Pensions wing has written to the Controller General Defence Accounts (Pensions) that the PCDA Pensions may be advised to issue a circular to the pension disbursing agencies not to make any recoveries of income tax on disability pension. The MoD direction refers to litigation regarding the issue pending in the Supreme Court in which the apex court had directed in its order on August 30 that status quo should be maintained by all parties. The MoD order further states that no recoveries should be made till a final decision is taken by the Supreme Court.