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Banks Demand Full Tax Deduction on Provisions Ahead of Union Budget
January 24, 2018
As the date for the next union budget is nearing, as many as 19 public sector banks have come forward with the suggestion of dropping the 5% tax on the provisions for the bad loans, thus, allowing for a full tax deduction instead.
The lenders across the country are currently struggling with non-performing assets worth Rs. 8 lakh crores, which is why they have suggested the lowering of minimum alternate tax (MAT), reducing the corporate tax rate by 5%, and allowing a full tax deduction on the provisions for the bad loans.
