Suggestion on Taxation of Co-operative Societies by BJP CA Cell, Mumbai


Suggestion on Taxation of Co-operative Societies by BJP CA Cell, Mumbai


Smt. Nirmala Sitharaman Madam,

Honorable Finance Minister

Ministry of Finance,

North Block, New Delhi

Respected Ma’am,

Sub: Suggestion on Co-operative Societies Taxation

Co-operative Societies play crucial role in the Development of the Country and lately it is Focus area of the Government.

Section 2(31) of The Income-tax Act defines Co-operative Society as under:-

“co-operative society” means a co-operative society registered under the Co- operative Societies Act, 1912 (2 of 1912), or

under any other law for the time being in force in any State for the registration of co-operative societies ;


However, it is not explicitly mentioned either in the definition of ‘assessee’ or the ‘person’ under section 2(31) of the Act.

“Company” is separately mentioned in the categories specified under section 2(31) but not “co-operative society”.

Hence, one has to look for the provisions of Section 80P which provide tax incentives to co-operative societies to find out whether co-operative society is an ‘assessed’ or not. Specifying separately under “person” has no adverse tax effect but would ease in making application for PAN etc. as one may not have to think of whether it would fall under “AOP” etc.

Hence, it is suggested that 2(31) which defines “person” should list “co- operative society” separately.

This would smoothen processing of the returns also and avoid litigation of claim u/s. 80-P etc.

We have already taken this point in our pre-budget memorandum. However, your good office can bring home the point.


You’re faithfully



BJP Professional Cell, Mumbai

CA MANISH GADIA                                                                     CA PARAS SAVLA

(Former  chairman–WIRC  of  ICAI)                                      (Former  Chairman  :CITC  ))

VP- Professional Cell, Mumbai.                                               V.P.- Professional cell Mumbai

CA MANMOHAN SHARMA                                                      CA KIRAN SHAH

President:Jogeshwari vidhansabha                                      Sr.Council Prfnl Cell, Mumbai

CA JULIE SHAH                                                                        ADV.Anjana Solanki

President:ward 72 BJP prfnl Cell, Mumbai               President:Dahisar Vidhan Sabha

CA TEKCHAND GUPTA                                                    CA PINKI KEDIA

Secretary:Profnl Cell                                                     Member:WIRC of ICAI Secretary : Profsnl Cell