Tax on Perquisites is a burning topic right now in India. The banks have been ordered to impose Tax on perquisites offered to its employees such as Tax on loans offered to employees at low interest rate.
This means that if a car loan is offered to public at 10% rate of interest and bank employees get car loan at 5.5% rate of interest, then Bank Employees will have to pay Tax on difference amount.
Bank Employees are protesting against this new policy imposed by Banks. In this controversy, an RTI was filed with Income Tax Department wherein detailes were requested regarding tax on perquisites imposed on employees of Income Tax Department. The purpose of RTI was to know whether tax on perquisites is applicable to staff of Income Tax Department or not. The Income Tax Department has provided following reply. The department has mentioned NA to all the questions regarding tax on perquisites.
Does this mean that employees of Income Tax Department need not pay tax on perquisites? This letter is going viral on social media and people are giving their opinions on this reply. As per the reply, it seems that tax on perquisites has not been implemented for employees of Income Tax Department. We are trying to collect more details regarding this matter.
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