« Top Headlines » Open DEMAT Account in 24 hrs  ITR Filing: 6 Ways to Get Exemption on Income Tax  Income Tax Return Filing: 10 Mistakes To Avoid When Filing ITR For AY 2024-25  Old vs New Tax Regime: Who should move to the New Tax Regime from the old one?  Income Tax Calculator FY 2023-24: How To Know Your Tax Liability Online On IT Dept's Portal?  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals «  Simplify ITR forms: IMC, BCAS to FM... Banks cannot use force to recover loans: SC... » RBI for restoration of tax benefits to RRBs July, 28th 2007 A task force of Reserve Bank of India has recommended restoring tax concessions to Regional Rural Banks (RRBs) for making them viable rural financing institutions and to increase their operational efficiency. The provisions under Section 80(P) of Income Tax Act may be continued for another five years or till the restructuring process is completed, the panel on empowering RRBs headed by NABARD chairman K G Karmakar has recommended. The finance ministry in 2006 had withdrawn the tax exemptions which treated RRBs as deemed cooperative societies. Tax concessions for RRBs are needed as their cost of operations is high, profits margins are low and they cater to weaker sections of the society, the task force said. It also suggested that the provisions of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (SARFAESI Act), which currently covers commercial banks, should also be extended to RRBs. The Act helps commercial banks securitise their bad debt. It further recommended that RRBs should shed their image as narrow banks while trying to provide all financial needs through progressive use of technology. They should also create their own investment cells and develop risk evaluation system. RRBs should also be allowed to issue bank guarantees, disburse salaries, introduce savings and credit products keeping in view the existing and potential requirements of their clientele, collect taxes and undertake other government business to improve their income.