AIBOC CIRCULAR NO. 2 DATED 6TH JANUARY, 2010

AIBOC has issued its circular No. 2 on Fringe Benefit Tax Notification issued by the Govt. We are reproducing the same here. 

CIRCULAR NO.2                 6^th JANUARY, 2010

TO ALL AFFILIATES/MEMBERS:

FRINGE BENEFIT TAX NOTIFICATION NO.94/2009/F:NO.142/25/2009 – SO (TPL) DATED 18.12.2009 

          We have addressed a letter to the Hon’ble Finance Minister, Government of India urging upon him to withdraw the recent notification and rule to tax the fringe benefits.

2.       We have annexed a copy of the letter which is self explicit.

3.       We will keep you posted of the further developments.

With greetings,

Sd/-

(G.D.NADAF)

GENERAL SECRETARY

No.1410/03/10                     06.01.2010

To,

Sri. Pranab Kumar Mukherjee

Hon’ble Finance Minister,

Government of India,

South Block,

Parliament House,

New Delhi.

Dear Sir,

FRINGE BENEFIT TAX NOTIFICATION NO. 94/2009/F.NO.142/25/2009 – SO(TPL) DATED 18.12.2009

          By issuing the above Notification the CBDT has shifted the incidence of payment of Tax on Fringe Benefits or the perquisites, from the employer to the employees and the payment of tax on perquisites has been implemented retrospectively from 01.04.2009.

2.       This has come as a rude shock to the working class of the country as it would put heavy monetary burden on the officers working in the Banking Industry, leaving only a meager net-take-home salary to the officers.  In these days of spiraling prices which have skyrocketed in the recent past have left the officers in the Banking Industry to groan under the burden of ever increasing cost of living, adversely affecting their efforts to provide quality education to their children, take care of the exorbitant medical expenses etc.  The captioned notification will further erode the net take home salary pushing our officers to a point of endless agony or economic stress.

3.       We wish to bring to your kind notice the fact that the perquisites provided to the officers are a welfare measure aimed at providing minimum comfort level to the officers working in the Banking Industry, who are subjected to cross country transfers at frequent intervals.  The perquisites are provided to enable the officer to discharge his duties without any sense of insecurity or fear.  Therefore, we feel it is necessary to keep the perquisites and fringe benefits out of the tax net so that the officers working in the Banking Industry, who have to work under constant pressure to implement the Government sponsored schemes for generating self-employment, eradication of poverty among the rural folk and other priority sectors.

4.       We request you to withdraw the notification and rule to tax the fringe benefits, so as to enable the officers to have better net take home salary for living a fairly quality life.

5.       We would be very glad to have your audience to make a presentation of our views on the rules to tax the perquisites and fringe benefits.

Thanking you,

Yours faithfully,

Sd/-

(G.D.NADAF)

GENERAL SECRETARY