Pension received from United Nations Organisation-Taxability thereof-Reg - Income Tax - 293/1981

Pension received from United Nations Organisation-Taxability thereof-Reg. Circular No. 293 Dated 10/2/1981 To All Commissioners of Income-tax. Subject: Pension received from United Nations Organisation-Taxability thereof-Reg. Sir, Section 2 of the U.N. (Privileges Immunities) Act, 1947, read with section 18, clause (b), of article V of the Schedule thereto, inter alia, grants exemption from taxation to salaries and emoluments paid by the United Nations to its officials. The question whether pension received by the erstwhile officials of the United Nations from it would be exempt from income-tax was considered by the Karnataka High Court in the case of Commissioner of Income-tax v. K. Ramaiah [1980] 126 ITR 638. The High Court held that since u/s. 17 of the Income-tax Act, 1961, salary has been defined to include pension, if salary is exempted from tax, so shall be the pension. The Board have accepted the decision of the Karnataka High Court. 2. In view of the foregoing, apart from salary received by employees of the United Nations Organisation or any person covered under the U.N. (Privileges Immunities) Act, 1947, pension received by them from the U.N. will also be exempt from income-tax. Pending appeals on this point may be conceded and reference applications withdrawn. Yours faithfully, (Sd.) N.B. Srinivasan Secretary, Central Board of Direct Taxes.