No IT exemption to cooperative banks Says Arun

The government on Friday ruled out giving income tax exemption to profit-making cooperative banks saying they functioned like commercial banks and should be treated on par.

Finance Minister Arun Jaitley said in Lok Sabha that the cooperative banks functioned like any other commercial bank and the principle of mutuality, which is central to granting exemption under Section 80P of the Income Tax Act, does not apply to them because their area of operations extends even to non-members.

Leave a Reply

Your email address will not be published. Required fields are marked *