New Delhi: Defence Minister Rajnath Singh on Monday said that the Central government is rethinking its decision of taking away the tax benefits from military personnel, who have disability pension but have served their full time. During speaking in Rajya Sabha earlier today, the senior Bharatiya Janata Party (BJP) leader also said that defence preparedness and interests of soldiers are top priorities of the government. "No soldier with a disability will be inconvenienced," he added.

While answer a question raised in the Upper House of Parliament, Singh said, “A clarification has been sought from the Central Board of Direct Taxes (CBDT) and the issue is being re-examined by the ministry.” The BJP-led Central government had last month announced that disability pension will be taxed if the soldier had served his full term with the three services - Indian Navy, Indian Army and Indian Air Force.

The CBDT notification had said that only those who were 'invalidated' from service because of disabilities during their service will continue to get tax benefits. Tax-free disability pension was brought in 1922 by the British. The decision of taking away the tax benefit was criticised by several experts and military veterans. The government, however, justified the move by stating that it was aimed to stop the misuse of disability pension.

Singh also said that the changes in disability pension has come to the government’s notice. “After getting the entire information, I will inform the House with the permission of the Chair,” he said. CBDT last month had issued that tax exemption would continue to be available to all Army, Air Force and Navy personnel who have been ‘invalidated’ from service ‘on account of bodily disability attributable to or aggravated by such service’. But added that tax exemption will not be available to personnel who have retired on superannuation or otherwise.

Military personnel with disability who retire after full service will no longer get tax exemption on their disability pension. It means that the pension will now be taxable unless military personnel were forced out of service because of disability sustained in service.