Dear All,
I have the following doubt.
Whether dividend declared by a co-operative society is exempt in the hands of receiver? If so whether dividend distn. tax is payable by the concerned society? The cocerned coop society is using the word limited in its name.
N. NAGARAJAN.
yes, such dividend is exempted in the hands of reciever.., and tax on such distribution of profits is paid by society.....
i think it is ryt
Dear sir,
Society is a corporate body registered under respective state laws or under multi state co-operatives act. The word "limited" signifies that the society is registered with limited liability. Section 115O covers only domestic companies & not 'co-operative societies'. Hence society need not pay Corporate Dividend tax for the same. Dividend income shall not be taxfree in the hands of members. But, principle of mutuality may apply.
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