Defence personnel Income Tax Exemptions and Liabilities of serving and retired personnel from the Defence Forces, CAPFs, Paramilitary Forces etc.

 

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

RAJYA SABHA
UNSTARRED QUESTION NO. 1049
ANSWERED ON – 29/07/2025

‘Income Tax Exemptions and Liabilities of Security Personnel’

1049. Ms. Swati Maliwal:
Will the Minister of FINANCE be pleased to state: –

(a) The number of serving and retired personnel from the Defence Forces, CAPFs, Paramilitary Forces, and other security agencies who filed Income Tax Returns in the past five years, categorized by force and rank;

(b) Total Income Tax Revenue collected from them during this period, including on salary, pension, allowances, and other income, listed force-wise and year-wise;

(c) The details of current tax exemptions, deductions, and benefits applicable to such personnel;

(d) Whether Government has analysed how many remain taxable despite the recent ₹12 lakh exemption and the findings, force-wise; and

(e) Whether a tax policy review is being considered in recognition of their service?

ANSWER

THE MINISTER OF STATE IN THE MINSITRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)

(a): Data in respect of the nature of Employment available in the Income Tax Returns includes only the following categories:

Central Government, State Government, Public Sector Undertaking, Pensioners-Central Government, Pensioners-State Government, Pensioners-Public Sector Undertaking, Pensioners-others, Others and NA (Not Applicable).

Details with regard to classification of Employer into Defence forces, CAPs, Paramilitary forces, other security agencies are not captured in the Income Tax Return. Hence, the requisite details are not available.

b): Data is not available in view of answer to Part (a) above.

(c): The Income-tax exemption and deductions as per the following sections of the Income-tax act 1961 are available to the serving and retired personnel from Defence Forces, CAPFs, paramilitary forces, and other security agencies:

It is relevant to state that the provisions mentioned in the above table are generally applicable to taxpayers at large, while certain specific benefits are extended exclusively to serving and retired personnel of the aforementioned forces, subject to the conditions prescribed therein.

(d): Data is not available in view of answer to Part a) above.

(e): At present, no such proposal is under consideration.