Public sector bank employees in India are facing an unexpected year-end surprise – a retrospective tax on perquisites, which will be deducted from their salaries. While State Bank of India (SBI) and Bank of Baroda (BOB) will absorb the tax liability, Punjab National Bank (PNB) is passing on the cost to employees. Union Bank of India is also asking employees to bear the cost, but PNB is offering personal loans to help employees pay the tax, with employees having to pay perquisite tax on the loan as well. The All India Punjab National Bank Officers’ Federation is protesting the decision, calling for SBI and PNB to bear the burden. The total tax outgo for PNB is estimated to be Rs 400-500 crore. The tax deduction will start next month, with different components of perquisite tax being deducted from employees’ salaries. Bankers are calling for larger banks with strong balance sheets to absorb the cost, while smaller banks may need government relief measures.
Separate profit-sharing scheme splits profit to offset staff tax liabilities.
by newsworm | Dec 17, 2024 | Bank of Baroda, Banking, Punjab National Bank, State Bank of India, Union Bank of India