NHB is wholly owned by RBI and Govt. of India has provided new deduction for this bank . From 1st April 2010 , NHB has right to get deduction of 20% of net profit for paying income Tax . Finance manager has provided this deduction due to watching its social and promotional works relating to finance of House construction in rural area.
Suppose NHB earn Rs. X profit
Now after Ist April 2010
Less deduction = X X 20/100
Taxable profit for payment of Tax = xxxxx