Phone 033 - 25734176
Fax
No.033-2573 3252
Mobile 9831233798 /
9434007694
All India
(A Coordinating Body of National Federation of RRB Officers
& National Federation of RRB Employees)
Adviser: Ajit Kumar
Ghosh
President: C. Rajeevan
Secretary General: A. Sayeed 1 Nazrul Islam Avenue VIP ROAD
Joint Secretary
Department of Financial Services
Ministry of Finance
Government of India
Respected Sir,
Sub: - Regional
Rural Banks (Gramin Banks) – Applicability of the Income Tax Act, 1961/
the Interest Tax act, 1974.
Ref: - Section 22
and Section 23 of the original Act, the Regional Rural Banks Act, 1976 (No. 21 of
1976).
We draw your kind
attention to the fact that –
·
In terms of Section 22 of the RRBs Act, 1976 Regional Rural Bank
is to be deemed to be a co-operative society for the purpose of Income Tax Act,
1961.
·
In terms of Section 23 of the said Act – “Not withstanding
anything contained in the Interest Tax Act, 1974, no Regional Rural Bank shall
be liable to pay any tax under that Act”.
Further, we like
to point out Sir, as per unaudited figures relating to key indicators of RRBs
as on 31-03-2014, Gross Profit (before tax) of all the 56 RRBs was around Rs.
3950 crore, but the Net Profit (after tax) came down to around Rs. 2715 crore, and
the figure of tax paid (or net provision) came to Rs. 1235 crore (approx.). Out
of this figure of Rs. 1235 crore, a sizable amount belongs towards the amount
of tax paid.
Under this situation
we would request you Sir, to kindly get the matter examined in the light of the
provisions of the above mentioned relevant Acts passed by the Parliament and issue
necessary orders so that RRBs are not made to pay Income Tax/Interest Tax and thus
the RRBs can be strengthened financially as per provisions of the Act.
With regards
Yours faithfully
(A Sayeed Khan)
Secretary General
Copy for information and
necessary action to –
-
The
Deputy Secretary, DFS , MOF, GOI, New Delhi
-
The
Chief General Manager (IDD), NABARD, Mumbai.
(A Sayeed Khan)
Secretary General
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