By making a cool insertion in section 17(II), Finance Minister has nullified the Supreme Court judgement. PSU employees have been fiting a long battle. as per the Income tax rules applicablle since April 2006, if a PSU employee stays in quarters provided by the PSU, 20 % of His salary ( including all allowance ) are considered as Perk and Taxed. Same is FREE for Central Government and State Government ( Courtsey IAS Lobby and Central Government Baboos making Income Tax Rules ) . PSU employees went to saveral Highcourts court and got stay. Matter was further taken up with Supreme Court as this was considered Discriminatary. However Suprement Court stated that It is NOT Discriminatary since Central Goverment and State Government employees stay in Very Bad ( ? ) quarters and can not be compared with quarters provided by Other companies. ( As if PSU Employees stay IN palaces) . Supreme Court in their Nov Judgement, stated that it is for Individual PSU to decide if they are providing Accommodation at Concessional Rent or no. Based on this Supreme,Court ruling , Most of the PSU's stopped deducting Tax on HOUSING Perk. Finance MInister and his Mandarins did not like this and changed the definition of Perk covered in section 17. This UPA goverment is Anti Salary Class specially ANTI PSU. Matter needs to be taken up at Highest level by all concerned. Every person staying in township has to bear additional tax of avg Rs. 20,000/= per annum. with retro effect from year 2001. consider what Finance Minister has done so coolely.
