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Dividend from cooperative banks

Priyanka Ojha (41 Points)

11 January 2019

If I receive dividend from saraswat cooperative bank then is it exempt under section 10(34)?
If no then why ?

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3 Replies

RAJESH KUMAR (CA-Finalist) (92 Points)
Replied 11 January 2019

Co-Operative Bank is owned by its members and as such not being a Domestic Company, it is not required to pay Dividend distribution Tax as referred in Section 115-O.

Dividend from domestic company is exempt U/s 10(34).

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 11 January 2019

dividend received from companies under cos act on which dividend distribution tax under 115 O is paid is exempt from tax
cooperative Banks are not required to pay DDT so dividend received from such Banks is taxable as income from other sources

Ritik Chopra (student) (8128 Points)
Replied 10 February 2021

A cooperative society is not covered u/s 115-O i.e. not required to pay tax on distributed profit like domestic companies. So Dividend from cooperative society would be taxable under the head other sources in the hands of the recipient.