Tuesday, March 15, 2011

BANKS GET BREATHER ON PENSION LIABILITIES

Public sector bank can amortize over five years the additional liability on account of re-opening of pension option for existing employees who had not opted for pension earlier as well as enhancement in gratuity limits beginning with the financial year ending March 31, 2011 subject to minimum of one fifth of the total amount involved every year. However, amortization benefit will not be available to those banks who have fully charged to the profit and loss account during the financial year 2010-11. All amounts relating to separated/retired employees need to be provided in 2010-11.

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