Excerpts
Maharashtra Urban Cooperative Banks Federation Chairman Ajay Bramecha
He expressed disappointment over the Union Budget 2025-26, citing the lack of special provisions or tax relief for Urban Cooperative Banks. While funds were allocated to the NCDC for the cooperative sector, no direct benefits were announced for cooperatives.
However, the budget brings significant relief for individual taxpayers. The income tax exemption limit has been raised to Rs 12 lakh, while the TDS exemption for rent payments and senior citizens’ interest income has increased to Rs 6 lakh and Rs 1 lakh, respectively. Homeowners can now claim two self-occupied properties with Nil Gross Annual Value (GAV), and the window for updated tax returns has been extended to four years.
Additionally, the removal of TCS on education loans for studying abroad makes overseas education more accessible. These measures aim to simplify compliance and enhance financial flexibility.
Sharad Sahakari Bank Chairman Devendra Shah
We have hailed the Union Budget presented by Union Finance Minister Nirmala Sitharaman in Parliament as a middle-class budget that addresses the needs of almost all sectors.
Although there were no direct announcements for cooperatives, except for government support to NCDC for its lending operations in the cooperative sector, the budget will still have an impact on cooperatives due to their role in agriculture.
The increase in the Kisan Credit Card limit, the introduction of the PM Dhan Dhanya Krishi Yojana, and other initiatives will naturally boost the cooperative sector.
Himachal Pradesh State Co-op Bank MD Sharwan Manta
There are several welcome decisions aimed at boosting the rural economy, including the enhancement of KCC, increased guarantee cover for MSMEs, the implementation of PM Dhan-Dhanya Krishi Yojna, the introduction of credit cards for MSMEs, and the development of the Gramin Credit Score.
These initiatives are expected to provide substantial support to rural businesses, farmers, and small enterprises, fostering economic growth and financial inclusion in rural areas.
Prime Cooperative Bank CEO Adil Gandhi
Union Finance Minister Smt. Nirmala Sitharaman’s budget addresses key demands, including tax slab amendments to promote compliance and reduce black money. The fiscal deficit target reduction from 5.1% to below 5% will stimulate GDP growth. Provisions for the poor, youth, farmers, and women are appreciated. MSMEs on the Udyam portal will receive credit cards up to Rs 5 lakh, and a new scheme offers Rs 2 crore loans for first-time entrepreneurs, especially women and marginalized communities.
The budget focuses on boosting the MSME sector, including industries like footwear, toys, and food processing.
Karnataka State Cooperative Credit Societies Federation Director Sanjay Hosmath
The Union Budget for FY 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on infrastructure, innovation, and urban reforms, with limited attention to the cooperative sector.
While previous budgets introduced measures like a 15% tax rate for new manufacturing cooperatives, the current budget does not address cooperative credit societies. Stakeholders are urging a review of provisions in Income Tax Acts 194N, 269ST, and 269SS to ensure fair treatment for credit societies.
Kalyan Janata Sahakari Bank MD and CEO Anant Kulkarni
Banks will directly or indirectly benefit from this budget, as some core issues, such as the new income tax bill, have been addressed. The budget prioritizes rural growth, boosts startups and MSMEs, provides tax relief and realignment for the middle class, and enhances global trade competitiveness.
It focuses on infrastructure development, with a strong emphasis on agriculture, digital trade, manufacturing, and investment. The government’s efforts aim to propel India toward becoming a $5 trillion economy while ensuring the country’s self-respect.
Udaipur Urban Cooperative Bank Chairman Tauseef Hussain
The Union Budget for 2025-26 is progressive, offering significant relief to taxpayers with a nil tax rate up to Rs 12 lakh and a Rs 1 lakh standard deduction on interest income for senior citizens.
The abolition of TCS on education-related remittances and the increase in TDS thresholds for rent and bank deposits simplify taxation. For the Urban Cooperative Banking sector, initiatives like the revamped KYC registry and improved credit access promote financial inclusion. Overall, the budget balances tax relief, economic growth, and financial sector reforms, benefiting individuals and businesses.
Mahesh Nagarik Sahakari Credit Cooperative Society Managing Director & CEO Magraj Rathi
The most important aspect of today’s budget is the income tax relief for the middle class, which will provide significant relief to salaried individuals. Similarly, the increase in the TDS threshold will offer much-needed relief to senior citizens. However, there is a greater need for more relief in the cooperative and banking sectors. There is also no concrete plan for small businesses, and there doesn’t seem to be much relief for the real estate sector either.
