M B Sohoni
Kindly give feedback for following queries.
1) Whether the dividend declared by co-operative banks is tax free in hand of shareholders. What is the section of income tax under which it is exempted. Whether one has to show it in his total income & then claim the exemption? If the dividend amount is invested in bank’ s fixed deposits, whether it is subjected to tax.
2) TDS issue on investment made by co-operative societies in co-operative banks. Whether the interest is exempted from tax as far as co-operative society is concerned.
I C Naik
Dividend is exempt under Section 10 but it is to be disclosed as income not liable to tax.
Interest earned on any amount invested in bank as FD is liable to tax where interest earned is in excess of Rupees 10000 in previous year.
