Announcement of measures to promote the cooperative sector, reduction in the budget allocation of the Ministry of Cooperation
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Several measures have been announced to promote the cooperative sector. These measures also include imposing a concessional rate of 15 per cent tax on new societies and fixing an upper limit of Rs 3 crore for TDS on cash withdrawals.
New Delhi. To give a boost to the cooperative sector, the government on Wednesday announced a slew of measures including imposing a concessional 15 per cent tax on new societies focused on manufacturing and capping TDS on cash withdrawal at Rs 3 crore. is included. The government has set a total budget outlay of Rs 1,150.38 crore for the Ministry of Cooperation in the financial year 2023-24. However, this amount is less than the revised estimate of Rs 1,624.74 crore for the financial year 2022-23.
Finance Minister Nirmala Sitharaman in her Budget speech announced a ceiling of Rs 2 lakh per member for cash deposits and loans in cash by Primary Agricultural Cooperative Societies (PACS) and Primary Cooperative Agricultural and Rural Development Banks. The government has also given sugar cooperatives an opportunity to claim as expenditure the payments made to sugarcane farmers for the period prior to the assessment year 2016-17. This is expected to give them a relief of about Rs 10,000 crore.
The announcement comes amid the government’s efforts to promote a cooperative-based economic development model for small and marginal farmers and other vulnerable sections. Sitharaman said to realize the vision of cooperative prosperity, the government has already started computerization of 63,000 PACS societies with an investment of Rs 2,516 crore. Model Rules for PACS Committees were prepared in consultation with all stakeholders and States to make them multi-purpose committees.
A National Cooperative Database is being prepared for countrywide mapping of cooperatives. Sitharaman said that in this background we will set up decentralized storage capacity on a large scale. This will help farmers to store their produce and sell at the right time to get remunerative prices. He said that the government would help in setting up a large number of multipurpose cooperative societies, primary fisheries societies and dairy cooperative societies in the left out panchayats and villages in the next five years.
To promote manufacturing in the cooperative sector, a new cooperative society formed on or after April 2023, which starts manufacturing or production by March 2024 and does not avail of any specified incentives or deductions, shall be entitled to a concessional rate of 15 percent. but will be allowed to opt for payment of tax. The government has also increased the limit for cooperative societies to withdraw cash without TDS (tax deducted at source). The finance minister said, “It is proposed to enable cooperative societies to withdraw cash up to Rs 3 crore in a year without TDS on such withdrawals.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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