New Delhi, March 3

The Ministry of Defence (MoD) has withdrawn a controversial order which withdrew income tax benefits to disabled soldiers. The Principal Controller Defence Accounts (PCDA) on Tuesday issued instructions which are based on the advice of the Secretary Defence (Finance). This asks that ‘no income tax be deducted’ till the case is decided by the Supreme Court.

The PCDA had issued instructions on February 20 citing a June 24, 2019, letter of the Central Board of Direct Taxes (CBDT) withdrawing income tax exemptions. Strangely, the PCDA issued a circular despite the fact that the Supreme Court had granted a stay on the matter, saying parties (MoD and respondents) shall maintain status quo. — TNS