Regarding tax treatment of above amount, unions filed case.
As stay granted , amount of tax deducted towards this contribution by banks are kept in Sundry Deposit, and not remited to Tax dept.,
In the mean time several employees received notices from I.T. dept demanding payment of tax for the above contribution.
What is the position of these cases?
Here is explanation received from AIBOC.
Please note that the case filed AIIBOA (AIBOC) in Kerala High Court is lost and the AIIBOA (AIBOC) has informed the Management that they are not going on appeal and the Management can remit the money to the IT department.
However in Madras High Court another case filed by AIBOA, the court has directed all banks not to remit the money to IT Department.
This stay is in force.
The problem with the IT department is that they do not care for any court order. Till AIBOA case reaches finality this problem will continue.