Rs 13,500 cr to revitalise cooperative sector: FM
New Delhi, May 12: The government will raise about Rs 13,500 crore in three years to revitalise the cooperative sector, Finance Minister P Chidambaram informed the Lok Sabha today.
Once the states sign an MoU with the government, they will start receiving funds, Mr Chidambaram said during Question Hour.
In reply to the main question, he said there was no proposal to review the decision of withdrawing the benefit under Section 80P of the Income Tax Act available to cooperative banks.
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 2 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.''