All India BSNL Pensioners Welfare Association (Regd. 1833/09)

Tamilnadu Circle

1A, Amirtham Avenue, Bharani Street, Bharathi Nagar, Velacherry, Chennai-600 042

President :V.Ramarao       Secretary : K.Muthiyalu         Treasurer : M.Ghousebasha

Mob.: 9444296085                   Mob.: 9444666646                 Mob.: 9444114136

To

The General Secretary,

AIBSNLPWA,

CHQ Chennai.

Dear Comrade,

Sub:-                Tax deduction from the Leave Encashment amount.

Ref:-                BSNL CO lr. No. 1001-04/2011-12/Taxation/BSNL/LE/196 dt. 04.05.2012

                        Leave encashment for the DOT period is fully exempted from TDS, whereas the leave encashment for the BSNL period is taxed.  The reason pleaded is Income Tax rules for PSUs are followed. Moreover it is stated that this is the view of corporate consultant and no rules is cited.

                        No doubt the BSNL is a PSU whereas the     BSNL is not following all rules of PSU.

For example the Leave Rules and kind of leave available in PSU is different.  Though BSNL was converted in to PSU, the leave rules, GPF etc. are continuing as it is in Govt.

                        Hence it is requested that the Corporate Office may be addressed in this regard.

 Thanking you, 

                                                              Yours Faithfully

                                                               ( K.Muthiyalu)

                                                                Circle secretary                                                                                                                      Date: 03.01.2017