'Cooperatives must be exempted from income tax'

'Cooperatives must be exempted from income tax'

DCC Bank President S L Dharme Gowda inaugurates the valedictory of All India Cooperative Week in Chikkamagaluru on Tuesday.

The government will be urged to grant an exemption under Section 80P of the Income Tax Act for the cooperatives, said DCC Bank President S L Dharme Gowda.

At present, the cooperatives have to pay income taxes under Section 80 P of the Income Tax Act, he added.

Speaking at the valedictory of the All India Cooperative Week organised by District Cooperative Union, District Cooperative Central Bank and cooperation department here on Tuesday, he said, “Section 80 P of the Income Tax Act was implemented on cooperatives in 2007-08. As a result, the DCC Bank in Chikkamagaluru pays income tax of Rs 2.5 crore annually. The DCC bank of Chikkamagaluru has paid Rs 17 crore income tax so far since 2007-08. Apex banks, all the DCC banks and milk unions in the state have paid Rs 850 crore income tax so far. There is a need to discuss the issue with Union finance minister to grant an exemption to cooperative sectors in the interest of the cooperatives.”

He said 913 farmers under weather-based insurance during 2017-18 have paid a premium of Rs 58.38 lakh. Under Pradhan Mantri Fasal Bhima Yojana, 75 farmers have paid a premium of Rs 3.14 lakh.

Unfortunately, the farmers did not get the insurance amount so far. There are loopholes in the crop insurance schemes. There is a need to sort out the loopholes, the president added. 

Dharme Gowda said that Rs 60.11 crore is pending to be released by the Centre and state governments to the Chikkamagaluru DCC Bank. 

Apex Bank Training Centre retired lecturer S G Kulakarni urged the cooperatives to focus on computerisation of cooperative banks.

The cooperative societies and banks should implement a core banking system, Kulakarni added.

Picard Bank President C S Ranganath and others were present at the programme.