Bank Employees: Public Sector Bank Staff

Bank Employees: The Center surprised employees working in public sector banking companies. The Income Tax Department has decided to collect taxes on concessions on loans given to bank employees. It has a serious impact on employees with the decision to collect tax on all types of loans currently surviving.

In the past, taxes are currently being taxed on subsidy being paid EMI. In this process, subsidy for bank employees is considered under income. As a result, employees received notices to pay heavy tax in the financial year 204-25. Employees are already paying interest subsidy on personal loans, housing loans, vehicle loans and salary advances.

Low interest loans will be given to bank staff compared to regular loans. Housing loans and personal loans are available with interest concession, and salary advances. To end this, the Union Finance Department is trying to collect taxes on the concessions available to the bank employees. It is to be implemented from this year.

Notices have been issued to employees since December to calculate additional income and calculate tax. In advance notice, the amount is to be adjusted for the salary of February and March. The tax is very large to pay the employees and the total number of salary is being taxed. This was opposed by bank employees and owners of public sector banks.

Employees have decided to pay the amount of income tax for banks. Public sector banks have to pay an average of Rs 300 crore for subsidy paid to employees. This amount is more than Rs 500 crore for banks with a large number of employees.

8 lakh employees in public sector banks

By 2024, the total number of employees in public sector banks in India was around 8 lakhs. In 2014, there were 8,42,813 employees and their number in 10 years. The number of employees in banks is reduced and due to the retirement and merger of banks.

State Bank of India currently employs 2.5 lakh employees by 2021. Bank of Baroda has 84,000 employees, Punjab National Bank has lakhs of employees and Union Bank 75,000. Around 8 lakh employees are working in Canara Bank and Central Bank and other public sector banks.