They are financial institutions that are helping the weaker sections of the society
Profit earned by the cooperative banks should not be taxed by the government, said P. Balakrishnan, General Secretary, All India Cooperative Bank Employees Federation, here on Sunday.
A resolution to this effect was adopted at the fifth State-level conference of the Tamil Nadu Cooperative Bank Employees Association held here on Sunday. Briefing presspersons, Mr. Balakrishnan said that income tax exemption should be given to cooperative banks as they are financial institutions helping the weaker sections of the society.
Profits earned by cooperative banks are used for the betterment of society as a whole and not for individuals. Till the year of 2006, tax was not levied on profits made by these banks. However, after 2006 income tax was levied on profits of cooperative banks.
The Central government's sanction of Rs. 2,370 crore for recapitalising weak cooperative and rural banks in 2006, was approved by the Union cabinet in 2009. However, the amount has not yet been released, said Mr. Balakrishnan.
He thanked the Tamil Nadu government for sanctioning Rs.2,500 towards pension for retired employees of Central cooperative banks .
Pension benefits should be extended to employees working in urban cooperative banks, state agriculture and rural development banks, primary agriculture and cooperative credit societies and industrial cooperative banks.
Central government should create a National Revival Fund to the tune of Rs.2,500 crore to recapitalise cooperative banks at the national-level. A rally by bank employees was taken out in connection with the proceedings of the conference. C.H.Venkatachalam, general secretary, All India Bank Employees Association (AIBEA), S.S.Thyagarajan, general secretary, AITUC-TN, N.Sampath, President, Tamil Nadu Cooperative Bank Employees Association, K.Anbalagan, Secretary, Thanjavur District Bank Employees Association, participated in the conference.