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Government Says No Income Tax Exemption to Cooperative Banks
January 02, 2018
This Friday, the union government said that since the cooperative banks that are generating profits are operating like the commercial banks, they shall not receive any income tax benefits.
In the Lok Sabha, finance minister Arun Jaitley said that with the cooperative banks functioning akin to commercial banks and their operations extending to even the non-members, the section 80P of the Income Tax Act, which grants a tax exemption, doesn’t apply to them.
Jaitley said many of the cooperative banks offer standard banking facilities like safe deposit vaults, bill discounting and collection, etc. So, a tax should be levied since “Income tax is on profits”, he said.
