A public sector bank in the city was served a notice by the Income-Tax department to show cause as to why Rs.1,572 crore worth of carried forward provisions should not be taxed.

In what was said to be a first-of-its-kind-step, the department has doubted if such huge bad debts really did exist and if such a provision should be carried forward, year after year. Consequently, the bank paid up about around Rs. 450 crore. The notice was issued by Indian Revenue Service officer B.V. Prasad Reddy. Following this, similar action was initiated on other banks, leading to the recovery of about Rs.1,000 crore.

Keywords: BankIT notice

More In: Hyderabad