PSBs split over perquisite tax liability for employees

SBI, BoB cover tax; PNB, Union Bank offer loans to staff

- Sachin Kumar

Public sector bank employees are preparing for an unwelcome year-end surprise – a retrospective tax on perquisites to be paid this financial year.

While State Bank of India (SBI) and Bank of Baroda (BOB) will shoulder the tax liability on behalf of their employees, Punjab National Bank (PNB) and Union Bank of India have asked employees to pay the tax themselves. Meanwhile, other public sector banks are still on the fence, leaving their employees anxiously awaiting clarity on who will foot the bill.

To ease the financial strain, PNB is offering personal loans to employees, as individual tax liabilities range from ₹25,000 to ₹5 lakh. However, employees availing of this facility will have to again pay perquisite tax on this personal loan.