The Parliamentary Standing Committee on Defence on Wednesday recommended that the proposal to impose income tax on disability pensions for armed forces personnel be “examined” and reconsidered. Separately, it flagged the urgent need for upgradation of fighter aircraft as a priority.

The committee said it had been apprised of the proposal to bring disability pensions, currently non-taxable, under the ambit of income tax. While taxation falls under the jurisdiction of the Ministry of Finance, it noted that the Ministry of Defence is a key stakeholder and should take up the issue at an appropriate level to examine the proposal.

The panel also stressed the need to prioritise next-generation fighter jet technology. “Technical upgrade of aircraft is required on top priority to enhance combat capability,” it said, adding that the Ministry of Defence should chart a clear trajectory for the development and acquisition of sixth-generation fighter aircraft to strengthen India’s air power in an increasingly contested environment.

On budgetary requirements, the committee recommended that additional funds, if needed, be allocated to the Ministry of Defence in the next fiscal beginning April 1, to ensure optimal combat preparedness of the armed forces.

It called for a greater focus on network-centric and cloud-enabled operations, and emphasised that indigenous research and development in glide missile technology would boost strategic preparedness and operational flexibility.

The panel also recommended the creation of a separate budget head for critical and emerging technology R&D to ensure timely execution of priority projects.

Further, it urged expediting ongoing efforts to exclude civil areas from select cantonments, stating that priority should be accorded to resolve issues faced by civilians in Cantonment Boards.

On technology infusion, the committee stressed that all initiatives and programmes must adhere to defined timelines to enable the armed forces to adopt and operationalise new capabilities in a timely manner. It also took note of efforts such as the national quantum mission and high-performance computing and AI cloud initiatives.