Although the employees of the Brihanmumbai Municipal Corporation (BMC) have received INR 26,000 as welfare grant, they received INR 8k to 10k after deduction. The trade unions have warned of going to court against deduction of income tax on welfare grants.
Last week, Chief Minister Eknath Shinde had announced the grant to BMC officers and employees of BEST initiative on the occasion of Diwali. Officials and employees of Mumbai Municipal Corporation have been given INR 26k.
The Chief Minister had ordered that income tax should be deducted in the month of March. However, the employees are upset because the welfare subsidy was given only by deducting the income tax. Seven to nine thousand rupees income tax has been deducted from the salary of many people.
The leader of the action committee of the labour organisation Adv. Prakash Devdas said, Bonus Act 1972 is not applicable to the municipality. Hence the grant of grace is given voluntarily. Income tax is not applicable on this grant. Therefore, an appeal will be sought against this in the court. This issue will also be placed before the Workers' Action Committee and if they do not approve, our organisation will go to court on this issue. Therefore, it will be clear once and for all whether it is right to cut the income tax when the bonus act is not applicable to the municipal employees, Devdas expressed his position.
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