No proposal to exempt cooperative banks from IT: FM
New Delhi, May 12 (UNI) The government does not propose to review the decision of withdrawing the benefit under Section 80P of the Income Tax Act available to cooperative banks, Finance Minister P Chidambaram said in the Lok Sabha today.
A number of representations have been received from the cooperative banks, requesting restoration of the tax benefit under Section 80P of the Income Tax Act as it stood before amendment.
The Finance Minister said the amendment was applicable to only two per cent of the cooperative banking institutions, which were 2,284 in number.
''Since the tax has to be paid only by the profit-making banks, the withdrawal of the exemption will be applicable only to 1,682 banks as per the latest figures.'' UNI YJ MSJ ND1258