The Hindu Business Line : Plan to bring co-op banks under I-T net opposed

Sahakara Bharathi, a cooperative forum, has opposed the proposal of the Union Finance Minister, Mr P. Chidambaram, to include cooperative banks under income tax net.

A press release by Mr K. Padmanabha, All-India General Secretary of Sahakara Bharathi, said here on Friday that the cooperative institutions - barring primary agricultural credit societies, and primary cooperative agricultural and rural development banks - would come under income tax net from April. The budget has withdrawn exemption on tax for cooperative bank profits under the Section 80P of the Income Tax Act. This move of the Government will affect the credit cooperative societies and urban development banks a lot, Mr Padmanabha said.

In his budget speech, the Union Finance Minister had said that cooperative banks, like any other bank, are lending institutions and should pay tax on their profits. Stating that primary agricultural credit societies and primary cooperative agricultural and rural development banks would continue to be exempt from tax under Section 80P of the Income Tax Act, Mr Chidambaram had proposed to exclude all other cooperative banks from the scope of Section 80P.

Referring to another proposal of the Minister to exempt fixed deposits in scheduled commercial banks over five years maturity period from tax under Section 80C of the Income Tax Act, Mr Padmanabha said this is not applicable to cooperative institutions.

More Stories on : Co-operatives | Taxation | Budget | Karnataka

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Forex reserves rise for fifth straight week

`FDI cap is no entry barrier for insurers'

Canara Bank to extend soft loan

More Reliance General branches

RBI clarifies on ECB

Indian Bank adds branch in Mumbai

Canara Bank hikes deposit rates

Banks queue up for loan to IA

Steel cos parking cash with banks

UK co hikes stake in Dewan Housing

Plan to bring co-op banks under I-T net opposed