Some of the customers of co-operative societies have realized that avoiding capital gain taxes through the route of co-ops is not a good idea. A large number of them in Kerala who thought cooperatives as safe tax heavens are now in for a shock as the income tax department has sent them notices over their deposits, reports Times of India.
Sources said most of the recipients of notices had sold their properties or put their retirement benefits. Since the capital gains they made were not declared to the government, they often kept the money at the cooperative societies.
The depositors have been asked to furnish details regarding their investments in cooperative societies along with its source.
Meanwhile, Kerala cooperative minister has said if there are deliberate attempts to harass people for having invested small amounts with cooperative societies, the state government would take up the matter seriously.