Disability pensions in the Indian armed forces will continue to be exempt from tax, Union defence minister Rajnath Singh has conveyed to senior government officials, effectively rolling back a recent order that brought the provision in the tax net.
At the same time, however, the minister has called on the three services – the Indian Army, the Indian Air Force and the Indian Navy -- to device a mechanism to reduce instances of misuse of the rules, according to people familiar with the developments who asked not to be named.
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