Union Budget 2006-07 removal of Tax exemption granted to Co Banks
Hyderabad, Mar 2 (UNI) The All India Cooperative Banks Employees' Federation today alleged that the Union budget for the period 2006-07, had dealt a severe blow for the cooperative Banks in the country by withdrawing the exemption given under section 80 (P) of theIncome-Tax Act with respect to the profits earned by them.
A federation press release said the Primary Agricultural Cooperative Banks and Primary Agriculture and Rural Development Banks continue to enjoy exemption under section 80 (P) of the Income Tax Act. But the higher-tier Cooperative banks, i.e. 30 State Apex Cooperative Banks, 20 State Agriculture and Rural Development Banks, 365 District Central Cooperative Banks and 1850 Urban Cooperative Banks would bebrought afresh under the Tax net, it pointed out.
The Cooperative Banks are, under the dictates and directives of the Goveranments both at the Centre and the State, and have been disbursing a major percentage of loans and advances for small farmers, marginal farmers, people of small means, unemployed youth, land-less agricultural labourers, Self-Helf Groups and other weaker sections of the society.
Their percentage of priority sector and advances exceed the achievements of the rest of the Banks under the financial system, it said.
Instead of improving the health of these Banks by other liberal concessions, the Centre has, unfortunately, chosen to withdraw the exemption already granted for payment of tax under Section 80(P) of the Income Tax Act, the federation added.
The All India Cooperative Bank Employees' Federation considers it an unfriendly act by the Government, and urges the Centre to immediately withdraw the same.
UNI ASJ VV SSI1936