The Army came in for sharp criticism from the veteran community on social media on Wednesday over its stand on taxing disability pension after Finance Minister Nirmala Sitharaman put out an unsigned note of the force which said some “unscrupulous personnel” were exploiting the disability benefits. Parts of the note were later tweeted by the Army’s Additional Director-General of Public Information (ADG PI).
“ADGPI at its worst possible. Campaigning against its own,” said Lt. Gen. Syed Ata Hasnain (retd) on Twitter.
Another veteran, Major Naveep Singh, a High Court lawyer, observed on Twitter, “The PMO has shown extreme sensitivity towards Divyangs. Mr. Parrikar made sure disabled soldiers, including those suffering from regular ailments, were given due comfort. Mr. Rajnath Singh has also been very caring. Today’s developments are saddening.”
Major Singh added in another tweet, “Actually I’m too benumbed to even react. This note goes against rules, judgements of the Supreme Court, medical science, and various reports of commissions and committees on the subject. Just too shocked. Unbelievable. Totally unbelievable.”
In a notification dated June 24, the Central Board of Direct Taxes (CBDT) under the Finance Ministry said that “such tax exemption will be available only to armed forces personnel who have been invalidated from service on account of bodily disability attributable to, or aggravated by, such service and not to personnel who have been retired on superannuation or otherwise.”
Following strong criticism from the veteran community against the Finance Ministry, Ms. Sitharaman put the onus for the initiative on the Army by putting out an unsigned note on Twitter, which was the view of the Army, on Tuesday. The unsigned note, “Response of the armed forces on the issue of taxability of disability pension”, says that the disability pension attributable to service conditions was being exploited.
Defence sources said there had been a huge rise in the number of disability claims especially after the hike in disability pension by the 6th Pay Commission. This was especially so in the higher ranks. “The idea is to incentivise fitness and not institutionalise a wrong practice,” a source said.
The source stated that there was a need to disincentivise disability pension and the Army has been discussing the issue. “The Army put forward its view to the Finance Ministry in the note,” the source added.
Defence Minister Rajnath Singh is expected to make a statement on the issue in the Parliament in a day or two, another defence source said.
Similar observations on the rising claims of disability by officers before or just after superanjuation were made in December 2014 by the Director General Armed Forces Medical Services (AFMS) in a letter to then Defence Secretary R.K. Mathur.