Hi,
-No, arrears of the past three years are not taxable.
-You can claim the same while filing ITR.
We may assist you in ITR filing.
Tax on arrears of disability pension for armed forces
Dear sir, 1. I have been granted disability pension in the current financial year 2019-20 along with arrears for past three years. 2. Since disability pension was not taxable till financial year 2018-19 and the matter is sub judice , what would be my tax liability on award of arrears for the past three years and of the current financial year 3. Are arrears of the past three years taxable. 4. What is the procedure to recover the taxes paid with reference to previous three years. . Thanx KK Prasad
Asked 5 years ago in Income Tax
The disability pension is exempt only if you have retired due to some disability.
The circular read as under: "Tax exemption will be available to armed forces personnel who have been invalided from the service on the account of bodily disability attributable to or aggravated by such service and not to personnel who have been retired or superannuated or otherwise"
So if you have received disability pension by fulfilling above condition you can claim it as exempt income.
You need to claim a refund while filing current year return of income.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
The exemption is available on disability pension received for retirement on account of bodily disability attributable to or aggravated by such service and not to the personnel who have been retired on superannuation or otherwise.
If the exemption is applicable to you, arrears would also be exempt.
It can be through return filing, we will have to check the previous returns filed.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
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