New Delhi, Feb. 12 -- A provision in the Finance Bill 2026 that seeks to provide income-tax benefits only to soldiers invalided out of service due to disabilities attributable to or aggravated by service, and exclude those who served and superannuated with disabilities, has triggered resentment in some military circles, with several veterans wading into the debate, saying the discrimination is unjustified and has created two classes of disabled soldiers.

Some Opposition parties have also criticised the development during the ongoing Budget session of Parliament.

The bill proposes providing an express statutory exemption from disability pension in cases where an individual has been invalided out of service on account of a disability attr...