Budget proposes tax neutral benefit for conversion of UCBs into banking company
Surabhi
Mumbai |
Updated on
Finance Minister Nirmala Sitharaman×
The RBI had in 2018 permitted voluntary transition of primary coop banks into small finance banks In a move that will help cooperative banks to convert to banks, the Budget has proposed tax exemptions.
It has provided tax neutral benefit for conversion of urban cooperative bank into banking company.
“It is proposed to expand the scope of business reorganisation to include conversion of a primary co-operative bank to a banking company and the deductions available under Section 44DB of the Act shall also be made applicable in relation to such conversion,”said the Memorandum to the Financial Bill.