Rahul Gandhi writes to FM Sitharaman, seeks rollback of tax on disability pensions

The LoP also referred to a provision in the Finance Bill 2026 to tax disability pensions if the soldier is retained in service.

New Delhi: Leader of Opposition in Lok Sabha Rahul Gandhi has shot off a letter to Finance Minister Nirmala Sitharaman seeking withdrawal of a newly introduced income tax on disability pension and adequate funding for the Ex-Servicemen Contributory Health Scheme (ECHS) in which he claimed around Rs 12,000 crore medical bills are pending.

The letter followed a meeting he had with a delegation of ex-servicemen with Rahul saying that it was "painful to hear their feelings of being let down" by the government and he was sure that the Minister will agree that "our brothers and sisters" who served the armed forces deserve every support from a "grateful nation".

"I urge you to clear all pending ECHS liabilities with adequate budget support and restore full income tax exemption on disability pensions," he said.

He said the ECHS is designed to give veterans the best healthcare but today it is suffering from severe funding shortages.

"Over 12,000 crore in medical bills remain pending, budget allocation is nearly 30% below requirement, and hospitals are opting out due to non-payment. Veterans are being forced to pay from their own pockets, or even delay treatment for serious diseases like cancer. Those who served the country are feeling neglected in their hour of need," he said.

He also referred to a provision in the Finance Bill 2026 to tax disability pensions if the soldier is retained in service.

"This is the first time since 1922 that disability pensions are being taxed. Disability pensions are meant to provide relief to servicemen who suffer injuries, and should not be thought of as income. Moreover, when a disabled serviceman chooses or is requested to continue in service, he or she is selflessly serving India despite sustaining injuries. It is insulting to tax what should be praised," he said.