Tripura Gramin Bank announces major relief for its employees, will Bear Full Tax on Employee Loan Perquisites
Tripura Gramin Bank has announced major relief for its employees by deciding to bear 100 percent of the tax liability on interest-free loans and loans given at concessional interest rates.
The recent guidelines issued by the Finance Division for the financial year 2025-26 required deduction of tax at source on various perquisites, including benefits arising from concessional or interest-free loans. This followed a Supreme Court order dated May 7, 2024, which upheld earlier High Court judgments stating that such loan benefits provided to bank employees are taxable as perquisites.
The Government and Supreme Court ordered Banks that the loans offered at a low rate of interest, such as Car Loan, Home Loan, should be treated as perquisites and tax should be imposed on these benefits. But this increased the financial burden on employees.
In view of the financial burden on employees, the Board of Tripura Gramin Bank, in its 289th meeting held on January 16, 2026, reviewed the matter and decided to provide relief. The bank has resolved to absorb the entire TDS liability arising on the perquisite value of these loans.
As per the circular, the decision will apply for the Financial Year 2025-26, ensuring that employees do not have to bear any additional tax burden on interest-free or concessional loans provided by the bank. The move is expected to provide significant financial relief to staff members and has been welcomed as a supportive step by the bank’s management.
