Drop Coop. Banks from Tax Net

Sirsi, Mar 7 (UNI) North Kanara District Chamber of Commerce, Industry and Agriculture Secretary Dr V S Sonde today urged the Union Government to drop the proposal of amending Section 80 (P) to bring Cooperative Banks under Income Tax net.

In a letter addressed to Finance Minister P Chidambaram, copy of which was released to the press here, Mr Sonde also urged for extension of the benefit to Cooperative Banks for Fixed Deposits under Section 80(C).

He said the above proposals would jeopardise the growth of the Cooperative Institutions which are already struggling for surrival in the present competition.

Dr Sonde said that non inclusion of the Cooperative Banks under Section 80(C) for availing benefit as in the case of the Scheduled Banks for deposits held for five years and above has aggravated the position of Cooperative Banks and making the deposits held there for diversion to the Commercial Banks.

UNI XR MSP RKN1428