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Hon’ble Sir,
We take this opportunity to bring out the
gross injustice that is being meted out to the officers of
ONGC and other public sector PSUs regarding the perquisites
of House accommodation being levied because of the proposed
amendment in the IT act through Finance Bill 2007 which was
presented by you for the year 2007-08.
Sir, let me quote from an article in Economic
Times where the author brings out:
Quote
….Gross inequity exists in the taxation system. Two
people could earn the same amount of money and yet one of
them is exempted from paying tax because he is growing vegetables
while other has to virtually forego 30% of his income because
he works on an Oil Rig……
Unquote
We would like to bring out that your bill has further heaped
injustice to your silent, honest taxpayer –
the PSU worker, which is explained below:
- As per new insertions to the Section 17(2) (ii) of the
IT Act, 1961 the employees residing in Company Township/Leased/Self
Leased accommodation shall have to pay additional income
tax on 15% to 20% of their gross salary (which includes
basic, DA, LTC, Bonus, Productivity Incentive, Other allowances
etc) under the head Perquisite for accommodation provided
by the Company. The accommodation provided by the
company is in lieu of House Rent Allowance.
- Further a License Fee fixed by the company and revised
as per the Government of India norms and regulations is
also paid on the accommodation.
- The proposed amendment will put an additional burden of
Rs15, 000/- to Rs.45, 000/- per year on each of the employee
in the PSUs. The amendment, if passed, will be effective
from 2002, which will further accumulate the burden to 45,000
to 1, 35,000/- per employee in a single stroke.
- It is worth mentioning that PSU employees are amongst
the most honest tax payer groups. Like Central Govt. employees,
they have whole heartedly committed themselves to the nation
building efforts. Moreover, ONGC as a PSU has been the largest
contributor to the Govt. Exchequer in the form of direct,
indirect taxes, cess, royalties and duties. ONGC has been
an active contributor to the social responsibilities of
the Govt. In fact our officers have given life for the nation
by working in terrorist infested and dangerous areas. Despite
all this, when 50% DA has been merged with the basic for
Central Govt. employees, PSUs are still to get the same
benefit. So it is distressing to find another discriminating
act in terms of Income Tax on Housing Perquisites.
- Like Central Govt. employees, Central Govt PSU (CPSU)
employees are also covered under Prevention of corruption
Act/CVC guidelines (both are treated as public servants
discharging public duties), Central Govt rules /regulations/
guidelines, reservation policy etc. The ownership of CPSUs
lies with the Hon’ble President of India. Hence differential
treatment for CPSU employees’ vis-à-vis Central
Govt. employees in Income Tax provision (Taxation on housing
perquisite) is a gross injustice. It is such policies that
have forced many of us to shift to Private sector jobs at
the cost of efficiency and growth of vital Public Sector
organizations. This ultimately shall show on the performance
of Public Sector. And the present Government shall be responsible
for this.
- The accommodation provided by the company is not a luxury
or perk but an essential part of performing our official
duties. It is like an extension of our official workplace.
Today we work in an environment where our officers are in
continuous danger and are also on call around the clock.
We are foregoing HRA due to residing in the company provided
houses. This proposed additional burden on the accommodation
is not at all justified.
Hence, we sincerely request you to remove this draconian
provision and remove the differential treatment that you are
trying to incorporate in the Finance Bill.
Yours sincerely,
(Amit Kumar)
President Asto Delhi
Copy to:
1. Sh. Murli Deora, Hon’ble Minister of Petroleum and
Natural Gas.
2. C&MD, ONGC, New Delhi.
3. Director (HR), ONGC, New Delhi
4. President/Secretary - All ASTO Units
5. Office Copy. |
