Finance Minister Arun Jaitley. Photo: Ramesh Pathania/Mint
New Delhi: In a pre-budget meeting with finance minister Arun Jaitley and senior finance ministry officials on Friday, banks sought tax breaks for haircuts taken during the resolution of non-performing assets.
Banks have also sought a replacement of the monthly reporting requirement to the tax department with annual reporting. They have also demanded that the time for recognition of bad debts be aligned. At present, it is 180 days, according to Reserve Bank of India norms, and 90 days, under the Income Tax Act. They also suggested incentivizing digital transactions, the finance ministry said in a statement.