Taxation of Co-Operative Society

• The business of banking or providing credit facilities to its members
• Cottage industry, or
• Marketing of agricultural produce grown by its members, or
• Purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members, or
• Processing of agricultural produce of its members without the aid of power, or
• Collective disposal of the labor of its members, or
• Fishing, or any allied activities i.e. catching, curing, processing, preserving, storing, marketing of fish or purchase of materials and equipment’s in connection therewith for the purpose of supplying them to its members.

100% of the profits, included in Gross Total Income are deductible in the case of a co-operative society, being a primary society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members to:

• A federal co-operative society, a society engaged in the business of supplying milk, oilseeds, fruits, or vegetables, as the case may be, or
• The Government or Local authority, or
• A government company or a statutory corporation which is engaged in supplying milk, oilseeds, fruits or vegetables, as the case may be, to the public

100% of the profits, included in Gross total Income are deductible in respect of any income by way of interest or dividends derived by the co-operative society from its investment with any co-operative society.

100% of the profits, included in Gross Total Income are deductible in respect of any income derived by the co-operative society from the letting of godowns or warehouses for storage, processing or facilitating the marketing of commodities.

1. Where such co-operative society is a consumers’ co-operative society, Rs. 100,000/-

2. In any other case, Rs. 50,000/-

Note: Consumer co-operative society means a society for the benefit of the consumers.