"UCO Bank Must Absorb TDS Burden on Perquisites": AIFUCBO Begin Agitation

UCO Bank officers, led by the All India Federation of UCO Bank Officers (AIFUCBO, affiliated to NOBO and BMS), have started an agitation to demand that the bank absorb the TDS liability on perquisite value related to concessional loans. The move comes after banks like State Bank of India(SBI) and Bank of Baroda (BOB) have been reported to initiate similar steps.   

(The letter from AIFUCBO to the MD & CEO of UCO Bank.)

Demands for TDS Absorption  

The agitation stems from management’s inaction on absorbing the TDS liability, as detailed in a circular from AIFUCBO dated 29 December 2024. The bankers argue that UCO Bank, which posted a net profit of ₹4,445.84 crores in the past fiscal year, is financially capable of bearing the ₹38 crore TDS burden.  

UCO bank staff are frustrated that while other leading banks like SBI and BOB have been reported to shoulder this tax burden, UCO Bank has instructed its staff to bear it themselves. The management’s decision has sparked resentment among employees and officers, who feel their contributions, including extra hours worked without additional benefits, have not been valued.  

Earlier, Joint Forum of Union Bank Unions had also announced an agitation demanding the Union Bank management to bear the additional tax burden that came to effect following a supreme court verdict. 

(The agitation call from AIFUCBO.)

Agitation Plan 

The phased agitation started with individual appeals to the MD & CEO through the bank’s HRMS platform from 30 December 2024. Further, it was followed by a memorandum submission on 31 December. The members of AIFUCBO from across the country submitted the memorandum.

(AIFUCBO members submitting memorandum in different regions of Uttarpradesh.)

Speaking to Kanal, Senthil Kumar, the State Secretary of AIFUCBO in TamilNadu, stated that the federation has firmly declared its intent to escalate the agitation to the second phase if the issue remains unresolved. This phase would include demonstrations, culminating in a one-day strike on 24 January 2025. “The bank must absorb the additional burden on staff benefits to ensure employees truly benefit from the perquisites. We are aware that the management of SBI and BOB have already decided to bear this additional cost. UCO Bank’s management should similarly step up to alleviate this burden on their staff,” he said.

(AIFUCBO Tamil Nadu State Secretary Senthil Kumar submitting memorandum in Chennai.) 

Background of the Issue  

The agitation follows the Supreme Court’s May 2024 ruling, which upheld the taxation of interest-free or concessional loans as perquisites. This ruling has led to retrospective TDS deductions for employees, creating a significant financial strain. Despite industry precedents set by other banks, UCO Bank has remained firm in its stance, prompting employees to mobilise.

(A demonstration organised as part of the agitation programme.)

The agitation underscores employees’ demand for equitable treatment and financial relief in light of the TDS burden. As the first phase unfolds, the employees hope management will reconsider its position to avoid further escalation.  

More photos from the agitation programme: