<p>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.<br /><br /></p>.<p>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.<br /><br />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.<br /><br />If the bill is passed, co-operative societies will have to pay around 30 per cent tax from their profits to the government.<br /><br />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. <br /><br />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.<br /><br />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. <br /><br />The Association recommended that the existing 100 per cent deductions for co-operative societies, under Section 80 (P), be restored. <br /><br />While, other co-operative societies should have a minimum limit for tax free <br />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.<br /><br />“I would appeal to the Parliamentary Standing Committee to take a relook into the matter,” he said. <br /></p>
<p>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.<br /><br /></p>.<p>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.<br /><br />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.<br /><br />If the bill is passed, co-operative societies will have to pay around 30 per cent tax from their profits to the government.<br /><br />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. <br /><br />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.<br /><br />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. <br /><br />The Association recommended that the existing 100 per cent deductions for co-operative societies, under Section 80 (P), be restored. <br /><br />While, other co-operative societies should have a minimum limit for tax free <br />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.<br /><br />“I would appeal to the Parliamentary Standing Committee to take a relook into the matter,” he said. <br /></p>