A group of leading cooperators from Karnataka were recently in Delhi meeting everybody from Union Minister Arun Jaitley to NCUI leaders seeking concession in Section 269ST of the Income Tax Act.
Representing Karnataka State Souharda Federal Cooperative Limited H.V. Rajeev, S.R. Sathishchandra, GurunathJantikar, B.H. Krishnareddy, among others, urged Union Minister Arun Jaitley to rethink the said section.
The provisions under the Section restrict a person to receive RS 2 lakh or more in the modes other than specified in the section.
It stipulates that no person shall receive an amount of two lakh rupees or more in aggregate from a person in a day; or in respect of a single transaction; or in respect of transaction relating to one event or occasion from a person.
They argue that due to lack of clarity in the matter, the cooperative societies in Karnataka are in panic not doing their routine business properly.
Hence we request your good selves to kindly instruct the CBDT to issue a clarification on the following matters- Whether a person who has availed the loan of more than 2 lakhs can repay the same in regular installments in cash or not?
They also wanted to know whether a guarantor who wishes to repay the loan of more than 2 lakh by way of transfer from his account in the books of the society is affected by this provision?
Their other query was whether the withdrawals by the member from his savings account or current account in the books of the society attract penalty u/s 271DA?
“It is also requesting your good selves that kindly exempt cooperative institutions from applicability of Sec.269ST by notification in the official gazette”, said a memorandum submitted by them to the Minister.
Later they came visiting NCUI’s headquarters and requested the Chief Executive to push their case.
