« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Govt may have to write off Rs 85,000cr tax arrears... E-filing creates ‘Web’, corporate sector files 4 lakh... » I-T sops on income from asset firms likely January, 05th 2007 The government may exempt investments in asset reconstruction companies (ARC) from income tax in the forthcoming Budget to boost the bad assets recovery business.    At present, the Income Tax Act does not recognise the pass-through nature of the trusts set up by such companies for acquisition, management and resolution of non-performing assets in accordance with the Sarfaesi Act and RBI guidelines.    The banking industry feels that ARCs play an important role in adding value to the impaired assets of banks by helping fast recovery of the non-performing assets (NPAs).    It is not possible every time for the ARCs to take debt or equity route to raise funds to purchase the impaired assets. Issuing of security receipts thus becomes a logical option.    Therefore the ministry may think of giving it the same status as mutual funds which are exempt from tax under Section 10 (23) (D) of the Income Tax Act, said a source.    Under the Section, while computing the total income of any person, income from any mutual fund registered under the Securities and Exchange Board of India Act (Sebi Act), 1992, is not included.    This income tax benefit on the individual incomes attract investment in this sector. So, investors in securities of ARCs should also be exempted to make it an attractive investment option, the source said.    The ministry is also likely to consider giving tax deductions to banks on the investments made to set up ARCs, under Section 36 of the Income Tax Act.    A number of deductions under Section 36 are allowed while computing income from profits and gains of business.    For example, scheduled banks are given tax incentives for an amount not exceeding 5 per cent of the total income and an amount not exceeding 10 per cent of the aggregate average advance made by the rural branches of such bank computed in the prescribed manner.