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Any pension payable to or in respect of a person who—
(a)before the commencement of Part III of this Act had served His Majesty in India, Burma or Aden, or elsewhere under the Governor-General in Council; or
(b)after the commencement of Part III of this Act—
(i)serves in India as an officer of His Majesty's forces; or
(ii)is appointed to a civil service of, or to an office or post under, the Crown in India by His Majesty or the Secretary of State; or
(iii)holds a reserved post,
shall, if the person to whom the pension is payable is residing permanently outside India, be paid on behalf of the Federation or the Province, as the case may be, by, or in accordance with arrangements made with, the Secretary of State, and be exempt from all taxation imposed by or under any existing Indian law, or any law of the Federal or of a Provincial Legislature.
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