Would the receipt by a Canadian resident of a military service pension and a military disability pension from the Ministry of Defence of the Government of India be taxable? CRA stated:
[T]he total amount of the Indian military service pension and the Indian military disability pension (inclusive of the inflation adjustment amounts) received in the tax year by the Canadian resident individual would be included in the individual’s income under the Act as pension income but would be exempt from taxation in Canada under Article 18 of the Canada-India Tax Agreement.