The banking operations of State Cooperative Banks and district cooperative banks across India would come to standstill today on December 8. Nafscob, the apex body of state cooperative banks is on collision course with the government on the issue of income tax exemption.
When resolutions and delegations have failed to bear any fruit, we decided to call strike on 8th of December on all India level, said MD of Nafscob Mr B Subrahmanyam to Indiancooperative.com.
Subrahmanyam further said that we have also requested urban cooperative banks numbering about 1700 to participate in the strike in our support.
Nafscob has asked all member State Cooperative Banks and all District Central Cooperative Banks to close operation for a day on 8th December for demanding restoration of tax exemptions
Income tax exemption was in vogue till 2006-07. However, with the amendment to Finance Act, 2006 this provision was done away with.
As a result of the said amendment, the income earned by the SCBs and DCCBs has become taxable with effect from the financial year 2006-07. NAFSCOB including the entire Cooperative Banking Structure has been unsuccessful in persuading Government of India to revisit the said provision of the Act.
The Board of Directors of Nafscob in their meeting held at Bangalore on October 15, 2011 once again reviewed the efforts of Nafscob and the entire Cooperative Banking Structure in this regard and resolved not to carry out their banking business by resorting to one day Strike on December 08, 2011 as a protest towards non-acceptance of the demand to restore the tax exemption.
Nafscob has also planned to send appeals from November on wards on continuous basis till the Union Budget is presented for the exemption to Union Government.