New Delhi, April 2 -- The Comptroller and Auditor General (CAG) of India has flagged a potential tax implication of Rs.74,766.39 crore arising from exemptions and deductions claimed by banks and non-banking financial companies (NBFCs). The report, tabled in Parliament on Thursday, highlighted persistent gaps in compliance, reporting and internal controls.

The report did not name any specific bank or NBFC, but noted that it covered 17 entities, including 10 scheduled commercial banks and seven NBFCs.

The performance audit, conducted by the CAG on the Income Tax Department, reviewed both follow-up actions on earlier findings from the 2008 audit and compliance with Reserve Bank of India (RBI) norms on asset classification, income recogniti...