Image Source: TRIBUNE

In a surprise move, a wing under the Ministry of Defence (MoD) has put out an old circular withdrawing income tax benefits to disabled soldiers.

The fresh circular, by the Principal Controller Defence Accounts (PCDA) dated February 20, cites the June 24, 2019, order on withdrawal of income tax exemptions. The same has been sent to all banks and state treasuries, meaning banks through which pension is transferred to individuals can now deduct income tax of disabled soldiers. The new circular comes despite the fact that the Supreme Court has granted a stay on the matter, saying “parties (the MoD and respondents) shall maintain status quo on the matter”.

The issue may come up for listing in the apex court sometime later this year.