Exemption of Income Tax for Dairy Cooperative Society
Exemption of Income Tax for Dairy Cooperative Society
The Government has taken the following steps to provide relief to the Cooperative Societies under Income Tax Act:
The Government provide interest subvention to make short-term crop loans up to ₹3 lakh available to farmers at the interest rate of 7% per annum and in case of prompt repayment, additional 3% interest subvention is given and effective rate of interest gets reduced to 4%. From the year 2018-19, Government of India has introduced Kisan Credit Card (KCC) scheme for Animal Husbandry and Fisheries in order to provide short term working capital loans (upto ₹2 lakh/beneficiary) at par with short-term crop loan. There is no such proposal under consideration.
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- A primary cooperative society engaged in supplying of milk to the Federal Cooperative Society is eligible to claim deduction in respect of its entire profit relating to supply of milk to Unions society u/s 80P of the Income Tax Act, 1961.