Punjab cooperative banks seek PM's intervention

Jalandhar, May 12 (UNI) Punjab State Cooperative Urban Banks and Credit Societies Federation have sought Prime Minister Manmohan Singh's intervention for revocation of amendment in the Income Tax Act, 1961, which had made taxable profits and gains derived by a cooperative society carrying business of banking.

The federation has also sent a memorandum to Union Finance Minister P Chidambaram through Income Tax Commissioner to press upon the demand.

The federation Chairman K K Sharma said here today the amendment enforced by the UPA Government through the Finance Bill 2006 had withdrawn the exemption from the tax under section 80P of Income Tax Act, on the above income of these banks. The exemption was available to them since 1967 and hence forth these banks have come under the income tax net.

Mr Sharma said that this amendment is detrimental to the existence of cooperative banks and cooperative movement in the country and therefore this amendment should be withdrawn and income tax exemption under section 80P should be restored.

National Federation of Cooperative Banks and Credit Societies today held demonstration in Mumbai to protest against the amendment, he added.

UNI SS PV VC1810