« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Tax reforms gain momentum in 2007... No service tax on health, education... » No tax deduction on disability pension to Armed Forces: Govt December, 22nd 2007 The government on Thursday said that there will be no deduction of income tax on payment of disability pension to the beneficiaries from the Armed Forces. "Banks have been advised to issue suitable instructions to all their pension disbursing branches that income tax should not be deducted from the disability pension paid to the pensioners of the Armed Forces," a Finance Ministry statement issued here said. Referring to some media reports that some banks were deducting tax from pension of disabled ex-servicemen in violation of government instructions, the finance ministry approached the Reserve Bank to investigate the matter and take remedial measures. After investigation, RBI discovered that in one specific instance, due to oversight, the disability pension was wrongly taken into account while calculating income tax, the statement said. Consequently, the apex bank issued instructions to all agency banks to strictly adhere to the provisions of the Defence Pension Payment Instructions, 2005, and not to deduct any income tax on disability pension to the ex-servicemen, it added.