'Keep co-ops out of DTC ambit'

'Keep co-ops out of DTC ambit'

The Karnataka State Credit Co-operative socities Association has demanded that both the Central and State governments keep the co-operative societies outside the ambit of Direct Tax Code, as proposed by the Finance Ministry.

The Association which had organised a State-level conference in the City on Tuesday, appealed to the legislators to raise  the matter in the upcoming Legislature session and pursue the same in Parliament.

The Union government which is expected to table a fresh bill in April 2012 has proposed that co-operative societies be brought under the Direct Tax Code of Section 80 (P) of Income Tax Act.

If the bill is passed, co-operative societies will have to pay around 30 per cent tax from their profits to the government.

Association General Secretary Gurunath Jantikar, addressing the gathering, appealed to the policy makers to review the matter, as it would have adverse implications on co-operative societies.

Co-operative societies should not be brought under the same bracket as that of nationalised and other banks, as they were not a match to them, he said.

There are as many as 1.5 crore co-operative society employees in India. Of the 30 crore co-operative society members, 26 lakh members are from Karnataka, Jantikar added.

The Association recommended that the existing 100 per cent deductions for co-operative societies, under Section 80 (P), be restored.

While, other co-operative societies should have a minimum limit for tax free
income.  It also demanded that proposed provisions as applicable to scheduled banks be applied to co-operative banks as well.  Senior BJP member V Dhananjay Kumar said his party too was fighting for the cause of co-operative societies.

“I would appeal to the Parliamentary Standing Committee to take a relook into the matter,” he said.