In a significant push for the cooperative sector, Union Cooperation Minister Amit Shah on Wednesday informed the Rajya Sabha that the Union Budget 2026–27 has introduced a key tax relief aimed at boosting income for cooperative members.
Highlighting the reform, Shah said cooperative societies will now get a deduction on dividends received from other cooperatives, provided the same is distributed to their members. The move effectively eliminates double taxation within the cooperative structure, ensuring that earnings flow directly to grassroots members.
Calling it a “pro-member reform,” Shah emphasized that the step will improve financial viability and bring greater tax certainty to cooperatives. It is also expected to strengthen federated structures, where multiple cooperatives operate in tiers, by allowing smoother financial distribution.
The minister noted that this reform aligns with the broader vision of enhancing income and welfare of cooperative members, while making the sector more robust, transparent, and growth-oriented under the government’s cooperative development agenda.
