Dividend from co-operative society

[Asked by Guest]

An assessee is receiving dividend from The Citizen Co-operative Society Ltd. Whether this income is taxable or exempt in the hands of the assessee. If exempt please refer relevant provision.

[ANITA BHADRA]

Taxable in the hands of assesee

[Ganeshan Kalyani]

In my view, tax on dividend is already paid by the company before distribution of the dividend. Hence recipient of dividend need not have to pay tax.

I welcome views of my collegue experts.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ganeshan

[YAGAY and SUN]

We endorse the view of Mr. Kalyani.

According to my view, dividends is already taxed before it is received by the beneficiary no need to be taxed again.

AI Summary

Taxability of dividend: recipient often relieved where dividend was taxed by the distributing cooperative before payment.
The issue is whether dividend from a cooperative society is taxable for the recipient. Responses record two positions: one asserting the dividend is taxable in the hands of the assessee, and a prevailing view that the recipient need not pay tax because tax was already discharged by the distributing society prior to distribution; no statutory provision or authoritative ruling is cited in the text.