MUMBAI: The Government has taken the following steps to provide relief to the Cooperative Societies under Income Tax Act:
- A
primary cooperative society engaged in supplyingof milk to the Federal Cooperative Society is eligible to claim deduction in respect of its entire profit relating tosupply of milk to Unions society u/s 80P of the Income Tax Act, 1961. - The surcharge on co-operative societies has been reduced from 12% to 7% on income of more than ₹1 crore and up to ₹10 crores.
- The rate of Alternate Minimum Tax for the cooperative societies have also been reduced from 18.5% to 15% for cooperative societies at par with companies.
- Section 269T of the Income Tax Act has been amended to provide that where a deposit is repaid by a Primary Agricultural Credit Society (PACS) or an Agricultural and Rural Development Bank (PCARDB) to its member or such loan is repaid to a PACS or a PCARDB by its member in cash, no penal consequence shall arise, if the amount of such loan or deposit including their outstanding balance is less than ₹2 lakh. Earlier this limit was ₹20,000 per member.
- A higher limit of ₹ 3 crore for TDS on cash withdrawal has been provided for co- operative societies as against Rs 1 crore threshold for applicability of TDS u/s 194N for other recipients.
The Government provide interest subvention to make short-term crop loans up to ₹3 lakh available to farmers at the interest rate of 7% per annum and in case of prompt repayment, additional 3% interest subvention is given and effective rate of interest gets reduced to 4%.From the year 2018-19, Government of India has introduced Kisan Credit Card (KCC) scheme for Animal Husbandry and Fisheries in order to provide short term working capital loans (upto ₹2 lakh/beneficiary) at par with short-term crop loan. There is no such proposal under consideration.
This information was given by the Union Minister of Fisheries, Animal Husbandry & Dairying, Shri Parshottam Rupala in a written reply in Lok Sabha.
