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Cooperative bank dividend itr2

J S BHAVSAR (CONSULTING) (1288 Points)

14 July 2019

I am shareholder of local Cooperative Vyapari bank where shares worth Rs 1000 were purchased 20 yrs ago. Not listed and not traded.

The bank issues total dividend per year something like Rs 60 to Rs 70 per year.

Which section of ITR2 such dividend is to be reported? Is this non-taxable or taxable?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 15 July 2019

ITR 2 under Income from Other sources. Taxable.

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 15 July 2019

Ok thank you Dhiraj Sir.

Does taxpayer need to report the Vyapari Cooperative Bank shares in the Unlisted shares table?

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 18 July 2019

Do we report this Cooperative Bank shares in Schedule PART A GENERAL Unlisted shares?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 18 July 2019

No if the bank is registered under Cooperative society act and not under companies act.

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J S BHAVSAR (CONSULTING) (1288 Points)
Replied 18 July 2019

Originally posted by : Dhirajlal Rambhia
	No if the bank is registered under Cooperative society act and not under companies act.

How will taxpayer find out if the Local Cooperative Vyapari bank is registered under which act?

The bank has following mentioned on its web portal:

RBI License: MH-730-P10/12/1986 Co-op. Reg. No. : 30797 Dt. 05/08/1961

So how to decide?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 18 July 2019

Co-op. Reg. No. : 30797 Dt. 05/08/1961 .....

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 18 July 2019

Originally posted by : Dhirajlal Rambhia
	Co-op. Reg. No. : 30797 Dt. 05/08/1961 .....

Okay since these local cooperative banks are under Cooperative Acts, we can skip declaring the shares of this bank. But still we have to offer the minute dividend it pays as consider as Income (taxable).

J S BHAVSAR (CONSULTING) (1288 Points)
Replied 09 August 2019

More detailed information now provided by Income Tax department today.

https://economictimes.indiatimes.com/wealth/tax/itr-filing-faqs-heres-what-to-do-if-you-dont-have-pan-of-unlisted-company/articleshow/70599931.cms?utm_source=ETTopNews&utm_medium=HPTN&utm_campaign=AL1&utm_content=23

Question 9: Please clarify whether holding of equity shares of a Co-operative Bank or Credit Societies, which are unlisted, are required to be reported?
Answer: The details of equity shareholding in any entity which is registered under the Companies Act, and is not listed on any recognised stock exchange, is only required to be reported.