MYSORE: Several employees of urban co-operative banks in Mysore district held a demonstration outside Deputy Commissioner's office in the city on Friday seeking exemption of all urban co-operative banks from the Income Tax net.

Over 100 staff take part

Led by the presidents of 10 urban co-operative banks in Mysore district, over 100 employees of the banks participated in the demonstration to bring pressure on the Union Government to exclude urban co-operative banks from the purview of the Income Tax.

In an appeal addressed to Finance Minister P. Chidambaram, the representatives of 10 urban co-operative banks in Mysore argued that the urban co-operative banking movement would be seriously hit if the Government does not exclude them from the Income Tax net.

"The urban co-operative banks are not taking any financial help from either the State or the Central Government. It is serving the financial needs of the low income group and downtrodden sections of society," the banks said.

Budget proposal

Referring to the Union Budget of 2006-07, the banks sought to draw Mr. Chidambaram's attention to the exemption from Income Tax available to scheduled banks under Section 80 (C). "Without this exemption, it is impossible for urban co-operative banks to compete with other banks and mobilise deposits. We request you to include the urban co-operative banks also under Section 80 (C) the Income Tax Act," the banks said in the appeal.

Gaining strength

The income tax exemption would help urban co-operative banking movement prosper and help the weaker sections of society, they said.

Representatives of Sri Kanyaka Parameshwari Co-operative Bank, Merchants' Co-operative Bank, Mysore Co-operative Bank, Graduates' Co-operative Bank, Krishnaraja Co-operative Bank, Muslim Co-operative Bank, City Co-operative Bank, Mahila Co-operative Bank, Railways Co-operative Bank and Navanagar Sahakari Bank, K R Nagar, participated in the demonstration.

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