Tax on Perquisites

SBI will bear tax on perquisites-NOINO reiterates demand to do the same in LIC.

SBI has decided to bear the tax on perquisites(on behalf of the employees/officers) on newspaper, petrol re-imbursement, staff quarters & furniture provided in staff quarters, entertainment etc vide their circular dated 13th March 2010. You may recall that the All India delegation of NOINO had met ED(P) & ED (MKTG) on 18th February 2010 to raise this issue. We have again raised this demand in the light of the above development. We reproduce below the letter submitted to ED(P) today i.e. 17th March 2010. A similar letter has also been submitted to ED(Mktg).

17.3.2010.

The Executive Director (Personnel),
L.I.C. of India.

Respected Madam,

Re: Tax on Perquisites

You may recall that our All India delegation had met you on 18th February 2010 to discuss various issues concerning the Class I Officers including the issue of Taxation on Perquisites relating to Staff quarters, Newspaper, & car under Scheme VI. You may also recall that we had demanded that the Corporation should bear the perquisites in all these matters. We had also given a reference that RBI is bearing perquisite tax on behalf of their employees. On the same day, we also met the ED (Marketing) Shri Chattopadhyay & placed our demand regarding the car under Scheme VI.
We would like to inform you that even SBI is bearing the perquisite tax on behalf of its employees. In this context, we draw your attention to the circular issued by SBI on 13th March 2010 ref P & HRD; Sl no.: 838/2009-10; Circular No.: CDO/ P & HRD-PM/75/2009-10, wherein it is clearly said that the Bank will continue to bear the Income-Tax (which means that it was bearing earlier too) on the perquisite value of furnished/unfurnished accommodation provided by the Bank as well as on the perquisite value of furniture. It is also further stated clearly in another paragraph that the Bank will also bear the Income-Tax on behalf of its employees on the perquisite value of monetary perquisites like re-imbursement of petrol bill/conveyance, entertainment, casual labour, cleansing materials, newspapers/magazines etc.
In the light of the above, we reiterate our earlier demand that the Corporation should bear the tax on the perquisites as referred above.

Yours faithfully,
Sd/-
Ganesh Kamath
GS, NOINO.