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The regulation follows a circular against tax exemption on impairment pension for veterans.
The Ministry of Defence on Tuesday directed the Principal Controller of Defence Accounts (PCDA) to stop deducting tax on special needs pensions of veterans and withdraw the controversial circular provided to that result.
” In view of the directions of the Supreme Court, PCDA( P), Allahabad may be recommended to issue a circular to Pension Disbursing Agencies not to make healing of earnings tax on special needs pension as per CBDT circular No.
