Chennai: Army veterans in Chennai opposed the proposed restriction on tax exemption for disability pensioners in the Union Budget.The Union Budget introduced a financial bill to give tax exemption only to personnel invalided out of armed forces service on account of bodily disability, while excluding those who superannuate, even though their disabilities are certified as attributable to, or aggravated by, service.This restriction will come into effect from April 1, 2026.“A disability does not change its nature merely because the soldier continued to serve despite it. This will significantly reduce post-retirement income of disabled soldiers amid the rising healthcare costs,” said retired Colonel J John Prince, secretary of the Armed Forces Veteran Officers Association in Chennai.“A majority of disabled pensioners retire on superannuation, not invalidation. So it will affect a large number of veterans. The revenue gained by this move is very marginal, but it will affect the morale of the soldiers,” he added.The association wanted income tax exemption on the disability pension retained for all armed forces personnel, irrespective of their mode of retirement.“A disability pension is compensation for a lifelong physical limitation,” said retired Lt Colonel Sada S Peter, who fought the Kargil War as a battery commander of the Rocket Regiment.“Taxing it for those who reached retirement age will create two classes of disabled soldiers: those who left early and those who stayed to serve despite their disability, treating the latter with less dignity,” he said, terming the bill as regressive and against the ethos of the military.Veterans also pointed out that the earlier attempt to restrict the tax exemption was stayed by the Supreme Court.
