Disabled war veterans in Bengaluru call pension tax move unfair

Bengaluru: The Union Budget 2026 has removed tax exemption from the pension of disabled soldiers who continued to serve despite their disability; it is now only applicable to soldiers 'invalidated' due to disability.

For over a century, since 1922, disability pension for injuries attributable to or aggravated by military service has remained fully tax exempt. Budget 2026 alters that settled principle from April 1, 2026.

While the Disabled War Veterans (India) (DIWAVE), a non-political organisation supporting war-disabled persons, is protesting the move in Delhi, disabled war veterans in Bengaluru call the move 'unfair' and a 'dishonour' to their service.

One such war veteran affected by the new rule is Lt Col KPM Nair (Retd), who lost his fingers during the Indo-Pak war of 1971.

"During the war, I was deployed in the western sector. I was among the teams recovering mines. During the process, one of the mines went off, and the impact burned all the fingers on my right hand and two-and-a-half fingers on my left hand. I had to get two fingers on my left hand amputated," said Nair, who continued to serve in the Army until superannuation in 2004.

The disability pension is typically provided based on length of service and severity of injury.

Colonel K Ramachandran (Retd), President, DIWAVE Karnataka Chapter, highlighted the negative impact the rules will have on retired soldiers.

The Karnataka chapter has about 80 members.

"We are all in our 70s and 80s now, with heavy medical bills and are dependent on our pension. The tax exemption matters more to us now, more than ever before. Such segregation between war veterans who went through the same events is unjust. Some officers had amputations and serious injuries, but decided to stay in the Army and continue to serve," he said.

Ramachandran, who was also deployed in the 1971 war, sustained injuries when a shell landed in his vicinity, damaging his nerves and leaving him with hearing impairment.