Photo Source: Babushahi Bureau
Lok Sabha: Manish Tewari slams Disability Pension Amendment, says its ‘Betrayal of Veterans’
Babushahi Bureau
Chandigarh, March 31, 2026:Chandigarh MP Manish Tewari on Tuesday termed the proposed amendment restricting tax exemption on disability pensions as a “betrayal” of armed forces veterans, raising the issue in the Lok Sabha.
Through an unstarred question, Tewari sought an explanation from the Union Finance Ministry on the rationale behind provisions in the Finance Act, 2026 that limit tax exemption on disability pension only to personnel invalided out of service.
He questioned whether any empirical study or impact assessment had been conducted to justify the distinction between invalided-out and superannuated disabled veterans.
The Congress leader also raised concerns over the constitutional validity of such differential treatment and asked whether the Ministry of Defence had been consulted before introducing the amendment.
He further sought details on the number of veterans likely to be affected, the expected additional revenue, and whether any transitional safeguards or grievance redressal mechanisms would be put in place.
Responding to the query, Minister of State for Finance Pankaj Chaudhary said that with the implementation of the new Income Tax Act, 2025 from April 1, 2026, earlier provisions would cease to exist.
He explained that in the absence of a specific clause, the exemption on disability pensions would have lapsed, prompting the government to include the provision in the Finance Bill, 2026 to continue existing benefits.
Chaudhary added that since the matter is currently sub judice, certain implementation challenges have arisen.
He clarified that until further notification by the Central Government, the entire disability pension—including both disability and service elements—will remain exempt from income tax.
However, Tewari strongly criticised the government’s stance, alleging that the amendment creates an “arbitrary and unjust distinction” between disabled personnel based on how they exit service. He said thousands of veterans across the country have already been protesting against the move.
Calling for immediate corrective action, Tewari urged the government to withdraw the contentious provision entirely, arguing that all disabled service personnel should be treated equally, regardless of whether they were invalided out or retired from service.