The federation has sought concession for PSU employees in the forthcoming Union budget through a communication to Union finance minister Yashwant Sinha, despatched on Friday. According to AISBOF president Shantha Raju, the payment of income tax in respect of salaried people must be classified separately and the income on account of remuneration should be considered only on basic pay for the purpose of income tax. The rate of standard deduction should be 20 per cent higher in respect of public sector employees. The federation has also sought some relief in respect of various perks and allowances as in the case of employees in privately managed companies. A special rebate towards payment of income tax should be provided on account of thefrequent transfers of PSU employees.

Public sector employees should also be able to avail of depreciation on account of personal conveyance, telephone and so on as in the case of salaried class in the private sector since these are utilised for the effective functioning of the officials. Concession should be provided in the taxation of reimbursements of various perquisites for effective discharge of duty.

It has suggested that no allowance or reimbursement should be considered for the purpose of computation of total income for the purpose of tax. Encashment of leave should also be exempt from income taxand superannuation benefits such as provident fund, gratuity and so on should be fully exempt from payment of income tax, Shantha Raju added.