NEW RULES ON DISABILITY PENSION

[BRIG NARINDER DHAND]

Dear Veterans,

The Mod DESW letter (WELFARE ?) dt 21 Sep 2023 containing Rules at Annex 1 , can soon be a m atter of deep concern for those of us who get disabled while in service and get disability pension with disability element in addition to the service element on retirement, both exempted from Income Tax under the Income Tax Act - 1962 as amended. 

Please read the MoD letter which includes host of policy letters issued by Army HQ since 1946 in our web page  https://signalsfamily.blogspot.com/2023/08/flash.html  by clicking serial one in there.  We are however attaching the Annex 1 for your quick review.

While the rules on the subject issued by the Govt describes the types of disability as hither to fore, but include another new category called Impairment Relief.  We are placing the extracts of the rules with specific reference to the New Category as follows. In our opinion it covers virtually most of the types of disability. 

(i) Impairment Relief. Impairment Relief is a monthly disability compensation, Calculated as a defined percentage of the last reckonable emoluments, awarded to Armed Forces personnel who are retired or discharged from service voluntarily or otherwise with a disability sustained under circumstances accepted as Category ‘B’ or ‘C’ and assessed not less than 20 per cent. ‘Impairment Relief shall hereinafter replace the term ‘Disability Element’ in as far as disability compensation to Armed Forces personnel who are retired or discharged from service. This is not a pension and shall cease upon the demise of the recipient.

(j) Liberalized Impairment Relief. Liberalized Impairment Relief is a monthly disability compensation, calculated as a defined percentage of the last reckonable emoluments, awarded to Armed Forces personnel who are retired or discharged from service voluntarily or otherwise with a disability sustained under circumstances accepted as Category ‘D’ and assessed not less than 20 per cent. ‘Liberalized Impairment Relief shall hereinafter replace the term ‘Liberalized Disability Element’ in as far as disability compensation to Armed Forces personnel who are retired or discharged from service. This is not a pension and shall cease upon the demise of the recipient.

(k) War Injury Relief. War Injury Relief is a monthly disability compensation, calculated as a defined percentage of the last reckonable emoluments, awarded to Armed Forces personnel who are retired or discharged from service voluntarily or otherwise with a disability sustained under circumstances accepted as Category ‘E’ and assessed not less than 20 per cent. ‘War Injury Relief shall hereinafter replace the term ‘War Injury Element’ in as far as disability compensation to Armed Forces personnel who are retired or discharged from service. This is not a pension and shall cease upon the demise of the recipient.

(l) Constant Attendance Allowance. A Constant Attendance Allowance is a monthly allowance (revised from time to time), paid in addition to Disability Pension/ Liberalized Disability Pension/ War injury Pension or Impairment Relief/ Liberalized Impairment Relief/ War injury Relief, only to Armed Forces personnel whose degree of impairment has been assessed at 100 per cent. This is not a pension and shall cease upon the demise of the recipient.

(m) Capitalized Impairment Relief/ Liberalized Impairment Relief/ War Injury Relief.  A Capitalized Impairment Relief/ Liberalized Impairment Relief/ War Injury Relief (to be hereinafter referred in short as ‘Capitalized Impairment Relief in these rules) is the commuted present value of the future payout of an accepted Impairment Relief/ Liberalized Impairment Relief/ War injury Relief calculated by adopting the current commutation tables. The provision of Broad Banding shall not apply for calculating the percentage of impairment for the award of ‘Capitalized Impairment Relief. The terms Capitalized Impairment Relief/ Liberalized Impairment Relief/ War Injury Relief shall replace the terms Lump-Sum Compensation in Lieu of Disability Element/ Liberalized Disability Element/ War injury Element..

What it means and wgy has this new category has emerged, is left to your judgement. The effect and the so called agenda will only be known only when implementation instructions are issued following the said  MoD letter. ed whether in new cases or the past cases as well.  There are enumerable speculations but we will refrain from mentioning at this stage.

It is however known that the Income Tax Act does not include the term Impairment Relief (Which is not the Pension) for 100% IT Relief. 😐😂

Let us wait and watch the next shoot by our Welfare department of the Defence Ministry and its impact on the risks which we had been taking in our service without a wink.. 

Best Wishes

ब्रिगेडियर_नरेन्द्र_ढंड
Brigadier Narinder Dhand.
Founder & Convener,
Web Portals Indian Mil Veterans,

http://bit.ly/3Ic1eU2

BE EMPOWERED BY KNOWLEDGE.

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