RBI/2013-14/579 UBD.BPD (PCB) Cir No.56/13.04.00/2013-14
Interest
Tax Act 1974 – Collection from borrowers
Please
refer to our circular UBD.BPD (PCB) Cir
No.18/13.04.00/2008-09 dated September 22, 2008 on the
captioned subject.
2.
It is observed from the Supreme Court Order dated February 21, 2014 in Writ
Petition (Civil) No.301 of 2005 that credit institutions which were in
existence between October 1991 and March 1997 but were merged with another bank
/financial institution prior to the date of the Supreme Court Order in April
2004 or merged subsequently, the transferee banks are liable to contribute to
the extent of ` 50 lakh each as also deposit the excess amount
collected by way of rounding off the interest tax on the interest income on
loans and advances by the transferor banks, to the Trust Fund.
3.
In view of the Supreme Court Order dated February 21, 2014, all UCBs are
advised to take suitable action in accordance with the Order of the Supreme
Court and report status to the concerned Regional Office of RBI.
Yours
faithfully,
(P.K.
Arora)
General
Manager
