With the arrival of budget season round the corner, activities to fight for the removal of Income Tax on cooperatives have gathered momentum. A delegation of Urban Cooperative banks met Union Finance Minister Pranab Mukerjee on Wednesday to demand for removal of IT on urban cooperative banks.
Readers may be aware that income tax was imposed on cooperatives in the year 2006 and it continues since then.
Urban banks have argued that since its area of operation involves vulnerable section of population where the risk is high, it should be exempted from IT net. We tread a path where private commercial banks fear to go and it not only banking but a kind of social service,they argue.
According to reliable sources, Pranab Mukerjee has assured the delegation of sympathetic consideration.
The delegation of Forum of Urban Cooperative Banks led by Basudev Acharia (CPI-M) and its convenor C V Kumar met Mukherjee in Parliament House and demanded to scrap the Income Tax imposed on such banks.
The delegation also requested that effective tax rates on cooperative banks be reduced.
“The Finance Minister sought some clarifications from us and assured that our concerns would either be addressed in the current budget or when the Direct Tax Code becomes effective,” Kumar told.
The delegation said the Finance Minister gave them a patient hearing and appeared positive to their demands.