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Co-op banks urge review of income tax proposal
April, 09th 2007
The proposal to collect 35 per cent income tax from the co-operative banks will hit them hard and the Union Finance Minister should rethink it or at least reduce the burden on the banks, according to Mr P. Raghunadha Rao, Chairman of the Kanakamahalakshmi Co-operative Bank, here and the Vice-Chairman of the AP State Co-op Urban Banks' Federation Ltd.

At a press meet here on Sunday, he said the co-operative banks in the State were on the recovery path after nearly five years of turmoil and "the tax proposal will hit them hard. We have represented to the Finance Minister and are hoping for the best".

Currently, he said there were 123 urban co-operative banks in Andhra Pradesh and their functioning had improved substantially after the setting up of the taskforce to monitor their functioning. "There may be consolidation of the urban co-op banks in the State and finally 110 or so may remain in the field," he said.

 
 
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