Thursday, October 3, 2019

Banks seek RBI nod for deferred tax route

Commercial banks are looking to move to the new tax regime will have to write off or reinstate deferred tax assets. Banks with huge DTAs on their books have reached out to the Reserve Bank of India to synchronize its provisioning norms with the recently-announced tax rates. Banks are hoping RBI prescribes a methodology so they can write these off over next three to five years. Banks fear that reinstating DTAs at one go could impact their net worth.