Useful Pension Information, Orders and Instructions

Authorization of Pvt Ltd Banks for Disbursement of Pension to Defence Pensioner
In pursuance of Reserve Bank of India's decision on the subject, the following private Sector Banks have been authorised for disbursement of disbursement of pension to Defence pensioners:- (a)HDFC Bank Ltd
(b)UTI Bank Ltd
(c)IDBI Bank Ltd
(d)ICICI Bank Ltd

Exemption of Income Tax on iberalised Family Pension
A case was initiated by PS Dte for exemption of income tax on Liberalised Family Pension in the year 2002. After concerned efforts a Gazette Notification has been issued wef 09 Feb 2005 for exemption of Liberalised Family Pension from the income for purposes of exemption of income tax if death of the member of armed forces (including Para Military Forces) has occurred under following circumstances in the course of the military operation and duties. (a)Acts if violence or kidnapping or attacks by terrorists or anti-social elements.
(b)Action against extremists or anti-social elements
(c)Enemy action in international war
(d)Action during deployment with a peace keeping mission abroad
(e)Border skirmishes
(f)Laying or clearance of mines including enemy mines as also mine sweeping operation
(g)Explosions of mines while laying operationally oriented mine-fields or lifting ornegotiation of mine-field laid by the enemy or own forces in operational areas nearinternational borders or the line of control
(h)In the aid of civil power in dealing with natural calamities and rescue operations
(j)In the aid of civil power in quelling agitation or riots or revolts by demonstrators

NRI Pension- Not to be Stopped on Change of Nationality
A large number of representations were being received from Ex-servicemen Association/ NRIs regarding stoppage of pension of Ex-Servicemen on their acquiring foreign nationality. However, in case of civil pensioners change in citizenship by any NRI pensioners did not affect their entitlement. A case was taken up with the office of PCDA(P), Allahabad and office of CGDA, New Delhi in 2003 for bringing the Armed Forces pensioner at par with civilian pensioners. Govt letter has been issued providing that even in the case of Armed Forces Pensioners the entitlement of pension will remain unaffected on the change of nationality and pension will continue to be paid by his/her pension disbursing agency. However, the pensioner should intimate the change of nationality as per the provision to the Pension Disbursing Agency as well as to the PCDA (Pension), Allahabad for updation of their records.

Eligibility of Unmarried Daughters of Armed Forces Personnel for Grant of Family Pension beyond 25 years of age
The Ministry of Defence vide their letter No. 1(3)2007/-D(Pen/Policy) dated 25 Oct 2007 have issued instructions regarding grant of family pension to unmarried daughters beyond the age of 25 years at par with widowed/divorced daughters subject to their income from all sources not exceeding Rs 2550/-pm.
Col H N Handa (Retd)
President Diwave
Disabled war Veterans
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