Delay in handing over fund collected through salary challenge; KSEB employees to face tax issue
Kochi: As the Kerala State Electricity Board (KSEB) delayed in handing over the money collected from its staff for rebuilding Kerala after 2018 flood through ‘Salary Challenge’ initiative to CMDRF, the employees will have to face a new financial burden under income tax returns.
KSEB had collected Rs 132.46 crore from staff through Salary Challenge in 10 months starting from October 2018 till July 2019. There were allegations that the board spent this money for other purposes instead of handing over it to the government for its real purpose.
Though the board ended the controversy by handing over the money to government the other day, new problem has arisen over income tax returns.
Donations given to the Chief Minister’s Distress Relief Fund (CMDRF) has 100 percent tax relaxation under the section of ’80G’ of income tax norms. Individual donations by staff were registered under the 80G norm last year to avoid tax.
But, KSEB failed to transfer the amount to CMDRF before March 31, 2019. A senior chartered accountant Rajan N Unni said since the board didn’t transfer the fund in time, the staff may not get the tax relaxation promised for the last fiscal year. Because, staff don’t have the receipt of money transferred. This makes them ineligible for tax relaxation.
However, the KSEB authorities said that the issue won’t affect the staff and if it affects, that will be solved.
N S Pilla, Chairman of the electricity board said that the board waited to make the amount a big sum by collecting it in 10 months. If the state government has no problem when the money was handed over as a single amount, what is the problem, asked the chairman.