Sh. P.K.Purwar, CMD/BSNL, , NewDelhi.

SUB; Request to immediately direct field units of BSNL to allow VRS optees to exercise option for new/old regime of IT deductionof tax at source, while making the final payment of ex gratia. Ref; Our letter no SNPWA/CMD/8/2020 dated 27th July, 2020 on the subject. Respected Sir Kindly recall the discussion that I had with your good self just recently on the issue of allowing VRS optees to exercise their option for new/old regime of Income tax while deducting TDS on their exgratia. Following very significant and pertinent facts, which cannot be simply brushed aside, are being recapitulated to enable you to take a very expeditious decision on the issue since final payment of exgratia is expected to be paid soon and it is extremely just and appropriate to take a decision on this issue before the final payment of ex gratia is made. 1. Ex gratia payment to VRS optees was made by BSNL, not by CCAs. 2. TDS was arbitrarily deducted on their exgratia on the basis of old tax regime by field units of BSNL, not by CCAs. 3. VRS optees were illegitimately, in defiance of the finance bill 2020 which gives an individual complete liberty and flexibility to exercise option on whether tax has to be deducted on old/new tax regime. 4. In complete contravention of the said orders of the Government, VRS optees were blatantly denied the chance to exercise option for new/old regime of tax on ex gratia. 5. By arbitrarily and illegimately deducting their TDS on the basis of old tax regime, they have suffered huge monetary loss since deduction of TDS on new tax regime would have enabled them to save huge amount of money that they have been coerced to pay by arbitrarily deducting their TDS on old tax regime. 6. Our persistent requests to Director(Finance) to issue immediate instructions to the field units to allow VRS optees to exercise their option at the time of final payment of exgratia have been consistently ignored for incomprehensible reasons, unknown to us and best known only to Director(Finance). 7. Allowing them to exercise option for TDS deduction will enable field units to make appropriate adjustments at the time of final payment of exgratia so that huge excess deductions already arbitrarily made are considerably offset at the time of making final payment of exgratia. 8. The intransigent attitude of Director(Finance) that VRS optees exercise their option to CCAs is completely irrational, untenable, unjustified and completely devoid of any merit since ex gratia has been paid by BSNL, not CCAs, and TDS deduction on exgratia arbitrarily on the basis of old tax regime has been made by BSNL, not CCAs. So, where is the question of exercising option to CCAs. How and in what manner do CCAs come into picture and what corrective action can they take 9. Corrective action regarding adjustment of huge TDS deducted on their exgratia illegitimately can be taken only by the field units of BSNL at the time of payment of their final instalment of exgratia. In view of the facts stated above, we would be grateful to your good self for your kind and expeditious intervention in the matter by directing field units of BSNL to allow VRS optees to exercise their legitimate right for deduction of TDS at the time of payment of final instalment of their ex gratia. A very quick decision in this matter is badly required since the final instalment of exgratia is expected to be paid soon and thus instructions to field units to allow VRS optees to exercise their option need to be issued instantaneously, without any further delay whatsoever. Keeping in view the seriousness and urgency of the matter, and being nothing but just and legitimate, we are quite confident of your benign and immediate intervention. Kind regards, Sincerely your ( G.L.Jogi) Copy to Sh. S.K.Gupta, Director(Finance), for initiating a very swift action on the issue so that grave injustice that is meted out to VRS optees is corrected at the time of making the final payment of ex gratia.

GS MET CMD REGARDING TDS OF EX-GRATIA