 "banks, finance")
The banking sector unions, under the aegis of the All India Bank Employees' Association (AIBEA), have sought exemption from income tax on profits of cooperative banks in the upcoming Union Budget to be presented on February 1.
The cooperative banking entities are not commercial undertakings. Whatever is earned (as surplus) will go to the members only. The taxation of profit defeats the purpose of cooperation. The exemption should be restored, said C H Venkachalam, Secretary General, AIBEA.
Earlier profits of cooperative banks were not taxed. It was the Congress-led United Progressive Alliance that brought profits of cooperative banks
