Dividend from co-operative society

[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.

[Guest]

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.