Reacting to the Union Budget presented by Union Finance Minister Nirmala Sitharaman, Nafcub President Jyotindra Mehta said the budget is growth oriented and due importance is given to the Cooperative sector.
“Income tax related litigation was a problem facing sugar cooperatives but the Finance Minister and Union Cooperation Minister Amitbhai Shah have found the way out. Now sugar cooperatives will have more savings on tax liability”, Mehta said.
In his budget reaction, Mehta said under sec 269SS and 269T the transaction in cash to the society was Rs 20 thousand, the new limit is Rs 2 lakhs. Mehta demanded extending the higher limit provision under section 269SS and 268T for urban credit co-operatives as well.
He further added, to encourage new cooperatives in manufacturing activities the FM has given relief that they will be taxed at 15% plus 10 % Surcharge. This will encourage cooperative startups, Mehta underlined.
Besides PACS and PACARD dealing with agriculturists, Sec 194A of the Income tax act was a great hurdle for participating Kisan and the small societies. The provisions of tax deduction at source were detrimental to the business of PACS and PACARD. The TDS limit of the eligibility is now increased to Rs 3 crore, the great relief to non-filer income tax payer members, Nafcub President added.
In the background of aftershocks of Covid and the Ukraine war and the effect of crude markets in the world economy, the budget will help India realize its dreams. No area is left untouched including reaching out to youth and growth in the financial sector.
Overall, the budget is all set to trigger a big jump in the economy including the co-operative sector. The budget is designed to lead India to becoming the world’s biggest economic power.