Page 309 - NHB AR 2020-21-3 complete- Print (1)
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8. Employee Benefits
8.1. The Bank has a Provident Fund Scheme managed by the RBI. Contribution to the
fund is made on actual basis.
8.2. The employees, who have joined the services of the Bank on or after 1st April, 2010
are governed by a Defined Contributory Pension Scheme, which shall be governed
by the provision of the Contributory Pension Scheme introduced for officers of the
Central Government w.e.f. 1st January, 2004 and as modified from time to time.
8.3 Liability for Gratuity, Pension, Sick Leave, Leave Encashment, Medical Retirement
Benefits and Leave Travel Concession is determined on the basis of actuarial
valuation.
8.4 In case of Residential Furnishing Scheme, no asset will be created under revised
Residential Furnishing Scheme and the amount sanctioned will be treated as
monetary perquisite to the employees. The Bank will pay tax on the same and the
tax so paid will be treated as an allowance to the officer and included in his taxable
income for the relevant year.
9. Taxes on Income
9.1. Tax on income for the current period is determined on the basis of taxable income
and the tax credits computed in accordance with the provisions of the Income Tax
Act, 1961 and based on the expected outcome of assessments / appeals.
9.2. Deferred tax assets and liabilities are recognized by considering the impact of
timing difference between taxable income and accounting income for the current
year and carry forward losses. Deferred Tax assets and liabilities are measured
using tax rates and tax laws that have been enacted or substantively enacted at
the Balance sheet date. In terms of AS-22 issued by ICAI, provision for deferred
tax liability is made on the basis of review at each balance sheet date and deferred
tax assets are recognized only if there is virtual certainty of realization of such
assets in future. Accordingly, Deferred tax liabilities or assets are reviewed at each
balance sheet date based on development during the year.
10. Foreign Currency Transactions
10.1. All assets and liabilities in foreign currency are translated in Indian Rupee
equivalent at the exchange rates notified by Foreign Exchange Dealers Association
of India (FEDAI) prevailing at Balance Sheet date and the resulting gain or loss on
the assets and liabilities, is credited or debited to Profit & Loss Account under the
head “ Exchange Gain/(Loss)”.
Annual Report 2020-21 | 289
8.1. The Bank has a Provident Fund Scheme managed by the RBI. Contribution to the
fund is made on actual basis.
8.2. The employees, who have joined the services of the Bank on or after 1st April, 2010
are governed by a Defined Contributory Pension Scheme, which shall be governed
by the provision of the Contributory Pension Scheme introduced for officers of the
Central Government w.e.f. 1st January, 2004 and as modified from time to time.
8.3 Liability for Gratuity, Pension, Sick Leave, Leave Encashment, Medical Retirement
Benefits and Leave Travel Concession is determined on the basis of actuarial
valuation.
8.4 In case of Residential Furnishing Scheme, no asset will be created under revised
Residential Furnishing Scheme and the amount sanctioned will be treated as
monetary perquisite to the employees. The Bank will pay tax on the same and the
tax so paid will be treated as an allowance to the officer and included in his taxable
income for the relevant year.
9. Taxes on Income
9.1. Tax on income for the current period is determined on the basis of taxable income
and the tax credits computed in accordance with the provisions of the Income Tax
Act, 1961 and based on the expected outcome of assessments / appeals.
9.2. Deferred tax assets and liabilities are recognized by considering the impact of
timing difference between taxable income and accounting income for the current
year and carry forward losses. Deferred Tax assets and liabilities are measured
using tax rates and tax laws that have been enacted or substantively enacted at
the Balance sheet date. In terms of AS-22 issued by ICAI, provision for deferred
tax liability is made on the basis of review at each balance sheet date and deferred
tax assets are recognized only if there is virtual certainty of realization of such
assets in future. Accordingly, Deferred tax liabilities or assets are reviewed at each
balance sheet date based on development during the year.
10. Foreign Currency Transactions
10.1. All assets and liabilities in foreign currency are translated in Indian Rupee
equivalent at the exchange rates notified by Foreign Exchange Dealers Association
of India (FEDAI) prevailing at Balance Sheet date and the resulting gain or loss on
the assets and liabilities, is credited or debited to Profit & Loss Account under the
head “ Exchange Gain/(Loss)”.
Annual Report 2020-21 | 289
