Tax Reprieve For Core Sector Loans

The government is planning to bring into force the newly-introduced Section 14 (A) of the Income Tax Act only from the 2002-03 assessment year, and not with retrospective effect from the 1962-63 assessment year.

The section introduced through Finance Act 2001 has denied financial institutions and banks tax benefits on their exposure to infrastructure projects. Sources said that a proposal to allow assessment of only the new cases under Section 14(A) is awaiting the government