Data analytics showed how disability pension benefits were misused
Posted on 08 July 2019

The latest circular which clarified the eligibility for availing disability pension by armed forces personnel was issued after data analytics found that the provision meant for the needy was being misused, the CBDT chairman has said.
Talking to PTI, CBDT Chief PC Mody said the circular issued on June 24 was not a new directive but only in clarification to the stated policy.
“If disability happens due to action, then this pension is untaxed as it has been”, the CBDT chief said.
The Central Board of Direct Taxes , which frames policy for the Income Tax Department, had issued circular no 13 of 2019 stating  "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." 

The Army, through its official social media posts, said that over the years, broad-banding and the compensation awarded for disability with income tax exemption had led to a rise in the number of personnel claiming disability even for lifestyle diseases.
“Indian Army is concerned for all personnel who are invalidated out of service in combat conditions or otherwise, and need additional support and discourages those who seek financial gains through their disabilities,” they said.