Banks have imposed Tax on Perquisites offered to its Employees. This is being done as per the orders of Supreme Court. Click here to understand this Tax on Perquisites. Download Supreme Court Judgement Order related to this case from link given below.
All the Public Sector Banks in India will now deduct Tax on Perquisites offered to their employees. It means that if Bank Employees have taken Car Loan, Home Loan, Festival Loan or any other loan at low interest rate, then they will have to pay this Tax. The Banks have deducted this Tax amount from January 2025 salary slips of their employees and some employees are getting negative Salary also.
What is this Tax?
In simple way, Banks offer loans to their employees at low rate of interest. For example, Banks offer car loan to their employees at 5.5% simple rate of interest whereas normal public has to pay 9% compund rate of interest for car loan. This leads to some savings for bank employees and is a perk to them. But now, Bank employees will have to pay tax on this income that has been saved due to low interest rate. Tax will be imposed on difference in amount due to difference in rate of interest.
