SBI VRS
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tvj krishnan
Feb 6, 2011, 8:35:07 AM2/6/11
to Other Bank Pednsioners' Blog
Dear Members
I refer to the mail of Mr. Parthasarathy Sridharan of date and have to inform the following:
State Bank of India offered VRS to its staff members during 2001 known as SBIVRS. It is the first such scheme with all benefits. All the award staff members SBIVRS applications were accepted in toto. Whereas for the officers (irrespective of the grade) applicants who have completed 55 years of age (as on the cutoff date) alone are accepted. Many applicants went to court on this. Since at the time of announcing the scheme, as the bank mentioned its right to accept or reject any application, all the cases were either dismissed or went in favour of SBI.
However SBI continued to accept applications from all its members who applied on regular voluntary retirement at all times with 3 months notice period. Salary for the residual service will not be paid.
During 2007 or 2008 it again gave an 'exit' option with some benefits. Salary paid for the residual period was not as good as SBIVRS of 2001 but also taxed. However subsequently many staff members got the tax relief upto certain limit.
However, I feel that working in the institution upto superannuation is good because some facilities are being denied to all those who retired prematurely.
Yours
Jayakrishnan
I refer to the mail of Mr. Parthasarathy Sridharan of date and have to inform the following:
State Bank of India offered VRS to its staff members during 2001 known as SBIVRS. It is the first such scheme with all benefits. All the award staff members SBIVRS applications were accepted in toto. Whereas for the officers (irrespective of the grade) applicants who have completed 55 years of age (as on the cutoff date) alone are accepted. Many applicants went to court on this. Since at the time of announcing the scheme, as the bank mentioned its right to accept or reject any application, all the cases were either dismissed or went in favour of SBI.
However SBI continued to accept applications from all its members who applied on regular voluntary retirement at all times with 3 months notice period. Salary for the residual service will not be paid.
During 2007 or 2008 it again gave an 'exit' option with some benefits. Salary paid for the residual period was not as good as SBIVRS of 2001 but also taxed. However subsequently many staff members got the tax relief upto certain limit.
However, I feel that working in the institution upto superannuation is good because some facilities are being denied to all those who retired prematurely.
Yours
Jayakrishnan
venkat rao
Feb 7, 2011, 10:40:56 PM2/7/11
to bankpe...@googlegroups.com
Mr.. Jayakrishnan,
Please inform me about theIT relief got by exit option retirees of SBI along with copy of any circular in the matter.
Thanking you,
Yours faithfully,
Venkatrao.H
From: tvj krishnan <tvjkr...@yahoo.com>
To: Other Bank Pednsioners' Blog <bankpe...@googlegroups.com>
Sent: Sun, 6 February, 2011 7:05:07 PM
Subject: bankpensioner SBI VRS
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tvj krishnan
Feb 7, 2011, 11:09:03 PM2/7/11
to bankpe...@googlegroups.com
Dear Shri Venkat Rao
At present I do not have required circular. I will get it as soon as I go to my native place on 23rd Feb.
Yours
Jayakrishnan
At present I do not have required circular. I will get it as soon as I go to my native place on 23rd Feb.
Yours
Jayakrishnan
From: venkat rao <venka...@yahoo.co.in>
To: bankpe...@googlegroups.com
Sent: Tue, 8 February, 2011 9:10:56 AM
Subject: Re: bankpensioner SBI VRS
tvj krishnan
Feb 8, 2011, 4:01:05 AM2/8/11
to bankpe...@googlegroups.com, venka...@yahoo.co.in
Dear Members
In continuation to my above mail, please note that SBI Pensioners'Association, Mumbai Circle (Pune) has mentioned the following:
Order issued by CBDT in respect of exemption under I.Tax Act for ex-gratia payment under 'OERS' for RBI employees - which may be (repeat may be) applicable for our Exit-optees
The link for the order is:
http://sbipensionerspune.org/next%20final%20pages/download%20files/Ex-gratia%20paid%20under%20RBI%27s%20OERS%20-%20exemption.pdf
I am sure that this will be of use.
Yours
Jayakrishnan T.V.
In continuation to my above mail, please note that SBI Pensioners'Association, Mumbai Circle (Pune) has mentioned the following:
Order issued by CBDT in respect of exemption under I.Tax Act for ex-gratia payment under 'OERS' for RBI employees - which may be (repeat may be) applicable for our Exit-optees
The link for the order is:
http://sbipensionerspune.org/next%20final%20pages/download%20files/Ex-gratia%20paid%20under%20RBI%27s%20OERS%20-%20exemption.pdf
I am sure that this will be of use.
Yours
Jayakrishnan T.V.
PM
Feb 8, 2011, 7:45:30 AM2/8/11
to bankpensioner
For Information:
1.In this case Bombay HC has held that, Optional Early Retirement
Scheme of RBI satisfies all the conditions of Rule 2BA and amounts
received by retiring employees thereunder were for
exemption u/s 10 (10C).
Income Tax exemption granted to RBI OERS optees under Sec.10(10)C
was,the same one availed by SVRS optees of all Banks.
'Clause (10C) of section 10 of the Income-tax Act, 1961, deals with
income-tax exemption on payments received at the time of voluntary
retirement. The provisions of this clause which covered earlier only
the payments received by employees of public sector companies have
been amended by the Finance Act, 1992,w.e.f.1.4.1993, to include
therein the payments received by employees of companies other than
public sector companies also.
Under the amended provisions of this clause, the payments on account
of voluntary retirement are to be exempt from income-tax only if the
schemes governing the said payments are in accordance with the
guidelines prescribed in this behalf.
The guidelines for the purposes of section 10(10C) of the Income-tax
Act have been laid down in the Income-tax Rules, 1962, by inserting a
new rule 2BA therein. The guidelines provide that the scheme of
voluntary retirement framed by a company should be in accordance with
the following requirements, namely :—
'(i) it applies to an employee of the company who has completed
ten years of service or completed 40 years of age;
(ii) it applies to all employees (by whatever name called),
including workers and executives of the company excepting Directors of
the company;
(iii) the scheme of voluntary retirement has been drawn to result in
overall reduction in the existing strength of the employees of the
company;
(iv) the vacancy caused by voluntary retirement is not to be filled
up, nor the retiring employee is to be employed in another company or
concern belonging to the same management;
(v) the amount receivable on account of voluntary retirement of the
employees, does not exceed the amount equivalent to one and one-half
months’ salary for each completed year of service or monthly
emoluments at the time of retirement multiplied by the balance months
of service left before the date of his retirement on superannuation.
In any case, the amount should not exceed rupees five lakhs in case of
each employee; and
(vi) the employee has not availed in the past the benefit of any
other voluntary retirement scheme.'
It can be observed that if any exit scheme comes within the purview of
above guidelines, may have the benefit of 10(10)c.
On Feb 8, 4:01 am, tvj krishnan <tvjkrish...@yahoo.com> wrote:
> Dear Members
>
> In continuation to my above mail, please note that SBI Pensioners'Association,
> Mumbai Circle (Pune) has mentioned the following:
>
> Order issued by CBDT in respect of exemption under I.Tax Act for ex-gratia
> payment under 'OERS' for RBI employees - which may be (repeat may be)
> applicable for our Exit-optees
>
> The link for the order is:
>
> http://sbipensionerspune.org/next%20final%20pages/download%20files/Ex...
> For more options, visit this group athttp://groups.google.com/group/bankpensioner?hl=en-GB.
1.In this case Bombay HC has held that, Optional Early Retirement
Scheme of RBI satisfies all the conditions of Rule 2BA and amounts
received by retiring employees thereunder were for
exemption u/s 10 (10C).
Income Tax exemption granted to RBI OERS optees under Sec.10(10)C
was,the same one availed by SVRS optees of all Banks.
'Clause (10C) of section 10 of the Income-tax Act, 1961, deals with
income-tax exemption on payments received at the time of voluntary
retirement. The provisions of this clause which covered earlier only
the payments received by employees of public sector companies have
been amended by the Finance Act, 1992,w.e.f.1.4.1993, to include
therein the payments received by employees of companies other than
public sector companies also.
Under the amended provisions of this clause, the payments on account
of voluntary retirement are to be exempt from income-tax only if the
schemes governing the said payments are in accordance with the
guidelines prescribed in this behalf.
The guidelines for the purposes of section 10(10C) of the Income-tax
Act have been laid down in the Income-tax Rules, 1962, by inserting a
new rule 2BA therein. The guidelines provide that the scheme of
voluntary retirement framed by a company should be in accordance with
the following requirements, namely :—
'(i) it applies to an employee of the company who has completed
ten years of service or completed 40 years of age;
(ii) it applies to all employees (by whatever name called),
including workers and executives of the company excepting Directors of
the company;
(iii) the scheme of voluntary retirement has been drawn to result in
overall reduction in the existing strength of the employees of the
company;
(iv) the vacancy caused by voluntary retirement is not to be filled
up, nor the retiring employee is to be employed in another company or
concern belonging to the same management;
(v) the amount receivable on account of voluntary retirement of the
employees, does not exceed the amount equivalent to one and one-half
months’ salary for each completed year of service or monthly
emoluments at the time of retirement multiplied by the balance months
of service left before the date of his retirement on superannuation.
In any case, the amount should not exceed rupees five lakhs in case of
each employee; and
(vi) the employee has not availed in the past the benefit of any
other voluntary retirement scheme.'
It can be observed that if any exit scheme comes within the purview of
above guidelines, may have the benefit of 10(10)c.
On Feb 8, 4:01 am, tvj krishnan <tvjkrish...@yahoo.com> wrote:
> Dear Members
>
> In continuation to my above mail, please note that SBI Pensioners'Association,
> Mumbai Circle (Pune) has mentioned the following:
>
> Order issued by CBDT in respect of exemption under I.Tax Act for ex-gratia
> payment under 'OERS' for RBI employees - which may be (repeat may be)
> applicable for our Exit-optees
>
> The link for the order is:
>
>
> I am sure that this will be of use.
>
> Yours
> Jayakrishnan T.V.
>
> ________________________________
> From: tvj krishnan <tvjkrish...@yahoo.com>
> I am sure that this will be of use.
>
> Yours
> Jayakrishnan T.V.
>
> ________________________________
> To: bankpe...@googlegroups.com
> Sent: Tue, 8 February, 2011 9:39:03 AM
> Subject: Re: bankpensioner SBI VRS
>
> Dear Shri Venkat Rao
>
> At present I do not have required circular. I will get it as soon as I go to
> my native place on 23rd Feb.
>
> Yours
> Jayakrishnan
>
> ________________________________
> From: venkat rao <venkatra...@yahoo.co.in>
> Sent: Tue, 8 February, 2011 9:39:03 AM
> Subject: Re: bankpensioner SBI VRS
>
> Dear Shri Venkat Rao
>
> At present I do not have required circular. I will get it as soon as I go to
> my native place on 23rd Feb.
>
> Yours
> Jayakrishnan
>
> ________________________________
> To: bankpe...@googlegroups.com
> Sent: Tue, 8 February, 2011 9:10:56 AM
> Subject: Re: bankpensioner SBI VRS
>
> Mr.. Jayakrishnan,
> Please inform me about theIT relief got by exit option retirees of SBI along
> with copy of any circular in the matter.
> Thanking you,
> Yours faithfully,
> Venkatrao.H
>
> ________________________________
> From: tvj krishnan <tvjkrish...@yahoo.com>
> Sent: Tue, 8 February, 2011 9:10:56 AM
> Subject: Re: bankpensioner SBI VRS
>
> Mr.. Jayakrishnan,
> Please inform me about theIT relief got by exit option retirees of SBI along
> with copy of any circular in the matter.
> Thanking you,
> Yours faithfully,
> Venkatrao.H
>
> ________________________________
nitin.g...@gmail.com
Mar 12, 2011, 1:29:15 AM3/12/11
to bankpensioner
Whether State Bank satisfies all the conditions of Rule 2BA as RBI ?
If yes, why only SBI exit optees not eligible for exemption under
section 10(10c) as per CBDT letter dt August,2010(which said that only
SBI exit optees not eligible for exemption and if erroneously already
exemption had been given, they are likely to recover. And the letter
for recovery also desptched from Income Tax Department to Exit
optees. I want to know whether any letter circulated by CBDT to give
exemption to SBI exit optees as RBI oers optees get? If so, please
give a copy of the same as Pune IT ward 6(4) not allowing any
exemption to SBI exit optees.
> > For more options, visit this group athttp://groups.google.com/group/bankpensioner?hl=en-GB.- Hide quoted text -
>
> - Show quoted text -
If yes, why only SBI exit optees not eligible for exemption under
section 10(10c) as per CBDT letter dt August,2010(which said that only
SBI exit optees not eligible for exemption and if erroneously already
exemption had been given, they are likely to recover. And the letter
for recovery also desptched from Income Tax Department to Exit
optees. I want to know whether any letter circulated by CBDT to give
exemption to SBI exit optees as RBI oers optees get? If so, please
give a copy of the same as Pune IT ward 6(4) not allowing any
exemption to SBI exit optees.
>
> - Show quoted text -
SBMPC Blore
Mar 14, 2011, 1:54:43 PM3/14/11
to bankpe...@googlegroups.com
Dear friends,
To avail benefits U/s 10 (10)(c) of IT Act, the company/Bank which introduces VRS, should not fill in vacancies resulting out of implementation of the scheme, CBDT/RBI approval should also be obtained.
Unfortunately, after/during the course/before implementation of EXIT Policy (Scheme), these two norms are not adhered to.
These issues have raised question mark relating to the benefit under 10 (10) (c) of IT Act
Thanking you,
With regards,
Prasad C N
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