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Exemption of Income of Co-operative Societies under Section 79 of the Bangladesh Income Tax Act, 2023. |
Exemption of income of co-operative societies under Section 79 | Bangladesh Income Tax Act -2023
As per section-79(ITA-2023),
Exemption of Income of Cooperative Societies
Income earned by a cooperative society from the following activities shall be exempt from income tax:
(a) “Agriculture;”
(b) operation of a cottage industry; and
(c) marketing of agricultural produce produced by its members.
Explanation: For the purposes of this section, a "cottage industry" means an enterprise that is not registered as a joint stock company and satisfies all of the following conditions:
(a) the owner is the investor, full-time worker, and actual entrepreneur of the business;
(b) the total investment in plant, machinery, and equipment does not exceed Tk. 25 lakh at any time during the income year; and
(c) the total number of workers, including the owner and members of the owner's family, does not exceed 15 persons.
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Frequently Asked Question (FAQ):
1. What is the exemption of income of co-operative societies under Section 79 of the Bangladesh Income Tax Act 2023?
Section 79 provides tax exemption for specified income earned by eligible co-operative societies, subject to the conditions and requirements prescribed under the Bangladesh Income Tax Act, 2023.
2. Which co-operative societies are eligible for income tax exemption under Section 79?
Co-operative societies that meet the legal requirements and operate according to the provisions of the applicable co-operative laws may qualify for tax exemptions under Section 79.
3. Is all income of a co-operative society exempt from tax in Bangladesh?
No. Only the categories of income specifically covered under Section 79 and related provisions are exempt. Other income may remain taxable depending on its nature and source.
4. What documents are required to claim exemption under Section 79?
A co-operative society generally needs registration documents, financial statements, tax records, and supporting evidence demonstrating eligibility for the exemption claimed under Section 79.