Govt. appreciated Bank Employees hard and risky work during Covid 19 time.

( Even today)

We accept your appreciation with pride.

We have done our duty.

But, what Govt. Gives us in return?

Privatisation of Public sector Banks!

What a pity?

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F. no. 16/3/2021-BOA-I

Government of India

Ministry of Finance Department of Financial Services

Jeevan Deep Building, 3rd floor Parliament Street, New Delhi - 110 001

Dated 22nd March 2021

To:

1. Chief Executive, Indian Banks' Association 2. Chairman, State Bank of India

3. Managing Director and Chief Executive Officer

Nationalised banks

Subject: 229th Report of the Department related to Parliamentary Standing Committee on Home Afiairs on Management of Covid-19 pandemic and related issues- regarding

Sir,

Please refer to Department of Financial Services' letter no. 7/3/2021-Parl, dated 16.2.2021, on the above subject.

2

The undersigned is directed to inform that the Parliamentary Standing Committee on Home Affairs on Management of COVID-19 Pandemic and related issues in its 229th Report has observed, inter-alia, as under:

"The Committee notes and appreciates the efforts and pain taken by the banking sector for providing uninterrupted and seamless banking facilities during the COVID-19 outbreak and consequent lockdown. In their sincere efforts to provide continuous service, many of the bank officials also lost their valuable life. The Committee, therefore, places on record the good work done by the banking sector right from the beginning of the COVID-19 Pandemic and observes that they are also recognized as COVID-19 warriors."

3.

Indian Banks' Association may suitably apprise its member banks regarding the above observations and Public Sector Banks may similarly apprise their respective Boards and staff.

Yours faithfully,

Unanatosh Rogl Under Secretary to the Government of India Tel: 011-23748755

Email: boa1-dfs@nic.in

Copy to:

Governor, Reserve Bank of India, Mumbai

 _Dear Comrades,_

_An individual message is under circulation claiming  that he is a Bank Employee and that he  had got full  exemption for his PL encashment i.e., beyond Rs. 3 lakhs from Income Tax Department after two years of correspondence through his auditor._

_We have already clarified that such claims are on misrepresentation of facts and it will attract action from Income Tax Authorities later at any point of time.  But still the message is circulated by some people creating unnecessary confusion._ 

_To clarify the correctness of our stand of the news item, we post herewith the relevant court verdict for reference. Members / Retirees may please be guided accordingly._

_Regards_ 

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Court verdict on 100% Excemption of tax on Leave encashment at the time of Retirement under section 10(10AA)

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Employee of PSU & Nationalised Banks Not Treated as Government Employee for Exemption u/s 10(10AA)

TG Team| Income Tax - Judiciary 25 Aug 2020 

Case Law Details

Case Name : Kamal Kumar Kalia & Ors Vs Union Of India & Ors. (Delhi High Court)

Appeal Number : W.P.(C) 11846/2019

Date of Judgement/Order : 08/11/2019

Related Assessment Year :

Courts : All High Courts Delhi High Court

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The issue under consideration is whether the assessee being employee of Public Sector Undertaking (PSU) and Nationalised Banks treated as government employee for the purpose of exemption u/s 10(10AA)(i)?

High Court state that the grievance of the petitioners is that on one hand, the retired employees from the Public Sector Undertaking and Nationalised Banks are discriminated against vis-a-vis the Central Government and State Government employees, on the other hand, the limit for exemption has remained static and has not been enhanced since 1998, even though, multiple Pay Commissions have come into force and have been implemented/adopted since then, even in respect of Public Sector Undertakings and Nationalised Banks. 

So far as the challenge to provisions of Section 10 (10AA) of the Act on the ground of discrimination is concerned, we are of the view that there is no merit therein. This is for the reason that employees of the Central Government and State Government form a distinct class and the classification is reasonable having nexus with the object sought to be achieved. The Central Government and State Government employees enjoy a “status” and they are governed by different terms and conditions of the employment. Merely because Public Sector Undertaking and Nationalised Banks are considered as “State” under Article 12 of the Constitution of India for the purpose of entrainment of proceedings under Article 226 of the Constitution and for enforcement of fundamental right under the Constitution, it does not follow that the employees of such Public Sector Undertaking, Nationalised Banks or other institutions which are classified as “State” assume the status of Central Government and State Government employees. 

It has been held in multiple decisions that employees of Public Sector Undertakings are not at par with government servants. 

HC therefore, reject the present petition, insofar as the petitioners challenge to the provisions of Section 10 (10AA) is concerned.