Bank of India has agreed to bear 100% of the Perquisite Tax on concessional loans, providing much-needed relief to thousands of employees. Recently, Banks in India announced to deduct TDS on perquisites such as loans offered to employees at low interest rate.
Present Proposal
Keeping in view the significant role played by Human Resources in the Bank, as a positive HR initiative and welfare measure, it is now proposed to absorb Tax liability arising out of perquisite value on account of concessional and interest free loans extended to the employees for the FY 2024-25 on the following terms:
a. Bank will absorb the Tax liability on perquisites arising on account of concessional and interest-free loans extended to all employees who are in service as on 01.04.2024 (i.e., from 01.04.2024 to 31.03.2025).
b. In case of Ex-employees superannuated/ voluntarily retired from the services of the Bank during this financial year, the Bank will bear the tax liability on account of concessional and interest-free loans extended to them on the outstanding loan liability up to the date of their superannuation/ voluntary retirement only. In other words, the tax liability as above will not be absorbed by the Bank post superannuation/ voluntary retirement.
c. The tax liability on perquisites of such employees who had resigned / imposed with CRS / terminated / dismissed / removed from the services during FY 2024-25 shall not be borne by the Bank.
d. The perquisites tax will be remitted on an individual PAN basis. All Employees/ Ex-employees shall give an undertaking that any change in Tax Regime/slabs or for any reason whatsoever, any refund received by the Employees/ Ex-employees shall be paid to the Bank.
