2 February 2024 | India and its Ministry of Fisheries, Animal Husbandry & Dairying released and implemented new tax exemptions and profit deductions for cooperatives providing milk and dairy products to the Federal Cooperative Society as outlined by Section 80P of the Income-tax Act, 1961. The goal is to create some financial relief for the nation's cooperatives and their members by utilizing tax law.
The income tax on cooperatives making more than ₹1 crore (£95,517) and up to ₹10 crores (£955,176) has been reduced from 12% to 7% for all those that qualify. Additionally, the rate of the Alternate Minimum Tax has been reduced to 15% to be more comparable to other Indian companies.
The government also amended Section 269T of the Income Tax Act to remove penal consequences when a deposit is repaid by a primary agricultural credit society or an agricultural and rural development bank.
Additionally, the ministry will provide interest grants, making short-term crop loans more accessible for involved or related farmers.
Click the link above to read the Ministry of Fisheries, Animal Husbandry & Dairying's press release on the Indian government's steps to help dairy co-ops.
