New Delhi: Keeping in mind the investment focused budget for 2009-10, which is to be presented by the Finance Minister on July 6, 2009, the industry body CII has asked the government to do away with various tax barriers for the financial sector. CII has also sought to bring in private sector banks at par with their peers in the public sector in terms of tax benefits provided during their merger.
Moreover, CII has asked the government to allow tax deduction for provisions made for NPAs of the banks and NBFCs.
It further said that the derivative trading activities undertaken by banks as well as financial institutions should be treated at par with other business activities for the purpose of Income Tax Act.
Besides this, CII has recommended that the investor’s income, who engages a professional discretionary portfolio manager registered with SEBI should be booked as capital gains and not the income from business.
Along with this, it recommends that the banks be granted TDS exemption in order to reduce the voluminous forms processing by the IT department and ensuring that the tax benefit is received by banks inspite of non receipt of TDS certificates from its borrowers/customers.
Moreover, CII has asked the government to allow tax deduction for provisions made for NPAs of the banks and NBFCs.
It further said that the derivative trading activities undertaken by banks as well as financial institutions should be treated at par with other business activities for the purpose of Income Tax Act.
Besides this, CII has recommended that the investor’s income, who engages a professional discretionary portfolio manager registered with SEBI should be booked as capital gains and not the income from business.
Along with this, it recommends that the banks be granted TDS exemption in order to reduce the voluminous forms processing by the IT department and ensuring that the tax benefit is received by banks inspite of non receipt of TDS certificates from its borrowers/customers.
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