NEW DELHI: The government on Wednesday announced a three-year tax exemption on dividend income for national cooperative federations, a move aimed at benefiting small members and strengthening the cooperative sector.
Finance Minister Nirmala Sitharaman said in the Lok Sabha that the tax relief will help boost incomes of small cooperative members and encourage greater participation in the sector.
FM Sitharaman stressed that cooperatives, along with micro, small and medium enterprises (MSMEs) and farmers, play a key role in creating jobs and supporting economic growth in the country.
Speaking during the discussion on the Finance Bill, FM Sitharaman said empowering MSMEs, farmers and cooperatives is essential for inclusive development.