Good News for this PSU Bank Employees! Bank officially declares to absorb Tax on Perquisites

Punjab National Bank (PNB) has finally declared to absorb 100% Tax on Perquisites. PNB has released an official circular regarding the same. Earlier, a few weeks ago, PNB MD&CEO, in a meeting, had announced the decision of the bank to absorb 100% Tax on Perquisites. Earlier, PNB was paying only 50% Tax on Perquisites, and employees had to pay 50% Tax.

Perquisites are benefits given to bank employees, such as interest-free loans or loans at very low interest rates. Bank employees receive car loans and other loans at lower rates compared to the general public. The court has now ordered banks to apply tax on these perquisites. This was one of the major benefits for bank employees, but after the court’s order, this advantage will no longer remain as beneficial.

Now, PNB will bear 100% of the TDS liability on perquisite value of interest free loans & loans at concessional rate of interest for FY 2025-2026. But this is not permanent. The decision on continuation or modification of this relief in future years shall be reviewed depending on the Bank’s operating profit and overall financial position.

Read More

PSU Bank Employees Protest Against Perquisite Tax

Employees of Punjab National Bank (PNB) in Churu staged a forceful demonstration outside the bank branch close to Dharmastupa on Wednesday. The protest was planned in reaction to the bank's new loan issue circular and the implementation of the perquisite tax. Workers are required to pay taxes on loans with low interest rates. Some employees are even receiving negative salaries as a result of this.

In contrast to other banks, PNB should also pay the perquisite tax itself, the protesting staff said, expressing their displeasure with the added tax load. The workers claim that their morale is suffering as a result of this additional financial burden. 

Also Read- Top 10 Mobile Banking Applications in India

They particularly highlighted the difficulties faced by officers enrolled in the new pension scheme, who are already deprived of the benefits provided under the old pension scheme. These officers, they said, would face even more challenges due to the new tax burden.

In addition to the tax issue, the employees also voiced strong opposition to a recent circular issued by the bank’s management concerning loans. They argued that the new circular would financially harm the employees and called for its immediate cancellation. The protesters demanded that the management create policies that ensure the financial well-being and stability of the employees.

Read More