NEW DELHI: Finance minister Nirmala Sitharaman on Wednesday tweeted a letter from Army Headquarters that appeared to justify unexpected withdrawal of tax exemption for disabled veterans. The letter claims that some retired personnel are ‘exploiting’ the system.

A recent notification by the Central Board of Direct Taxation reversed a decades-old privilege given to disabled soldiers that exempted them from income tax. This created an uproar among veterans, forcing the finance ministry to release the letter, suggesting that the recommendation came from the Army HQ itself.

The unsigned letter, shared on the Twitter account of Sitharaman, blames some “unscrupulous personnel” for exploiting the system for personal gain and justifies the change in policy. Disability is granted to personnel who are disabled in combat or during peace time and their disability is attributable to service conditions. The latter have somehow explanted the weakness in the mechanism for grant of disability pension and along with the tax exemption,” the letter states.

Veterans have termed the letter “unprofessional” and “shocking”, pointing out that the power to grant disability pension lies with the Army itself and if needed, a crackdown should be conducted against those faking disability, instead of punishing the entire community for the wrongs of a few.

The Army HQ letter says that there has been a rise in personnel being awarded disability pension even for lifestyle diseases, which it considers a “cause for worry.”