Co-operative banks have no income tax exemption: Finance Minister

The Finance Minister said, "There is tax on income tax benefits and there is no logic behind giving exemption from income tax to cooperative banks making profits."

New Delhi: The government today rejected the possibility of granting income tax to cooperative banks (co-operative banks) who have made profits today. The government said that these banks work like other commercial banks and according to that they should be looked at.

In response to Ram Singh Rathwa's query in the Lok Sabha, Finance Minister Arun Jaitley said that the co-operative banks act like a second commercial bank and the principal of mutualty associated with exemption under section 80P of the Income Tax Act does not apply to them because they The work area also happens to non-members.

The finance minister said, "There is no tax on income tax profit and there is no logic behind giving exemption from income tax to cooperative banks who are making profits." Jaitley said that most of these banks have many types of banking facilities Also provide lockers and secured deposit vault and bank guarantee etc. Hence, there is no question of giving any rebate from income tax to them.