KSEB salary account frozen
BL Bureau

Thiruvananthapuram, Feb 25

The Income-Tax Department has advised that the bank account handling salary payments of the Kerala State Electricity Board (KSEB) be frozen for apparent failure to comply with tax requirements.

According to sources, the bankers have received a circular to this effect from the I-T department.

The present situation has been precipitated as a result of a long-drawn dispute between the department and the KSEB. The former has been maintaining that the KSEB was a company and hence needed to pay up tax.

This was being contested by the KSEB, which claimed for itself the status of an organisation functioning within the State Government.

The department had demanded that the KSEB pay a prescribed minimum alternative tax. A related case was being considered for disposal by the Kerala High Court.