The high courts of Karnataka, Andhra Pradesh and Jabbalpur division of the Madhya Pradesh today vacated the earlier stay order on the deduction of income-tax on perquisites.
This follows the finance ministry's applications to various high courts for a caveat. The stay given by the various courts was for a maximum one month.
The Supreme Court (SC) has decided to take up the case for hearing on April 1 following the Bharti Mazdoor Sangh's (BMS) petition on behalf of all employees of insurance companies, banks, public sector undertakings and the private sector.
The BMS has moved the SC against deduction of tax on perks with retrospective effect from April 1, 2001. The Central Board of Direct Taxes (CBDT) had in September last year issued a notification to tax perquisites and allowances at source.
Since then, a number of associations on behalf of various public sector employees had filed petitions in various high courts.
The Professional Worker Trade Union Centre of India Congress and AIIEA had filed separate petitions in the Karnataka High Court in March on behalf of the members. The high court on March 14 granted a stay on the deduction of tax on perquisites for four weeks.
The Andhra Pradesh High Court ordered an interim stay on the deduction of tax on perquisites and allowances in January in respect of members of the All India Bank Officers' Confederation (Aiboc).
This followed a petition filed by the members of Aiboc questioning the constitutional validity of such a deduction.
