MP CM urges FM to grant IT concession to coop banks

Bhopal, Oct 11 (UNI) Madhya Pradesh Chief Minister Shivraj Singh Chouhan has written to Finance Minister P Chidambaram urging him to grant Income Tax (IT) concession to cooperative banks.

''The concession ought to be provided as district cooperative central banks play an indispensable role in the farmers' credit extension programme,'' Mr Chouhan wrote in the letter, copies of which were released to the press today.

In the 2006-07 Budget, the concession-linked provision was done away with under Section 80(P) of the IT Act, affecting 38 district banks and the Madhya Pradesh State Cooperative Bank that aided 4,530 primary farmers' credit cooperative societies.

''The banks also play a key role in the public distribution system and implementation of principal government schemes. The recently-started scheme for extending short-term agricultural loans, at seven per cent interest, is being primarily implemented through the medium of these banks whose profit margin is negligible just like the societies,'' the Chief Minister wrote.

UNI