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.
Regards,
You’re faithfully
- SHAILESH R.GHEDIA
President
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