Whether natonalised banks would be regarded as banking companies for the purposes of deduction of interest on deposits with them under clause (vi) of sub-section (1)

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..... nder clause (vi) of sub-section (1) 1. A question has been raised as to whether the nationalised banks would be regarded as banking companies under the provisions of section 80L(1)( vi ). The relevant provision reads as follows : "(vi) interest on deposits with a banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in se .....

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..... stitution referred to in section 51 of the Banking Regulation Act, 1949, will qualify for inclusion in the categories of income which are exempt up to Rs. 3,000. Under an amendment made through section 20 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, section 51 of the Banking Regulation Act, 1949 has been made specifically applicable to the nationalised banks. In v .....

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