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Exservicemen of special category are extempted to pay any kind of Tax out of his pension income

Disability Pension  of Exserviceman is exempted for Income Tax

Disability pension has Two components -  1.  Service Element   2. Disability Element

 Service Element &    Disability Element Both are Exempted  from Paying Income Tax 

CBDT issued Circular - Exemption from income tax to disability pension, i.e. ” disability element” and “service element” of  disabled officer of the Indian Armed Forces

As per the Circular dated 02.07.2021 it has been decided to reiterate that the entire disability pension, i.e. ” disability element” and “service element” of a disabled officer of the Indian Armed Forces continues to be exempt from income tax.

Authority : – Ministry of Defence, PCDA Circular No. 210 Dated 20.02.2020. – Ministry of Defence, PCDA Circular No. 211 Dated 03.03.2020.

RBI has issued instructions to all agency banks to strictly adhere to the provisions of para 88.3 of Defence Pension Payment Instructions, 2005, regarding exemption of income-tax of the disability pension of the pensioners of Armed Forces

So, If you are getting disability pension, your total Pension - i.e Service Element (Service pension) and Disability element (Pension) both are exempted for Income Tax