Income Tax Department deducts Rs 1.38 crore from Aligarh Muslim University's bank account

The Income Tax Department has deducted an amount of Rs 1.38 crore from Aligarh Muslim University's bank account in connection with payment of income tax against leave encashment of retired employees, following which the varsity is mulling its future course of action against the move.

The amount was deducted from the university's account at the University branch of State Bank of India on September 8, with the varsity officials claiming that this was done without any prior information to them.

No income tax is imposed on leave encashment of retired employees in any other central university, including Banaras Hindu University, AMU spokesman Rahat Abrar said.

"The university has checked with all other central universities in this regard. For quite some time now the varsity had been raising this issue with IT authorities when on September 8 it issued directives to the State Bank of India's AMU Branch for deducting the above amount from the university's account," Abrar said.

SBI authorities deducted the above amount without informing the university authorities, he claimed.

The spokesman said that it was difficult to find logic in IT department's decision in "singling out" the university for levying the tax.

"The entire matter will be reviewed at the meeting of the University's Executive Council which is being held on September 19," he said.