The Union Budget 2026-27 proposes several incentives for primary cooperative societies. Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman proposed to extend the deduction allowed to a primary cooperative society for supply of cattle feed and cotton seed produced by its members. Deduction is allowed to a primary cooperative society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members. The Finance Minister also proposed to allow inter-cooperative society dividend income as deduction under the new tax regime to the extent it is further distributed to its members. To support National Cooperative Federations, Smt. Nirmala Sitharaman proposed to allow exemption for a period of 3 years, to dividend income received by a notified national cooperative federation, on their investments made in companies up to 31.1.2026. This exemption would be allowed only for dividends further distributed to its member co-operatives. The release ID is 2221407.
Key Entities Referenced
Union Budget 2026-27: The central budget proposing incentives for cooperative societies, including deductions for supplying cattle feed and cotton seed, and dividend income.
Ministry of Finance: The government ministry responsible for proposing the Union Budget 2026-27 and related incentives.
Primary Cooperative Society: A type of cooperative eligible for deductions on supply of cattle feed and cotton seed.
Inter-Cooperative Society: A type of cooperative eligible for deduction on dividend income under the new taxation regime.
National Cooperative Federations: Federations that will receive a dividend income exemption for 3 years
Ministry of Finance
UNION BUDGET 2026-27 PROPOSES SEVERAL
INCENTIVES FOR COOPERATIVES
SUPPLY OF CATTLE FEED AND COTTON SEED PRODUCED
BY A PRIMARY COOPERATIVE SOCIETY ALLOWED FOR
DEDUCTION
INTER-COOPERATIVE SOCIETY DIVIDEND INCOME
ALLOWED AS DEDUCTION UNDER THE NEW TAXATION
REGIME
प्रव तथ: 01 FEB 2026 12:49PM by PIB Delhi
Union Budget 2026-27 has proposed several incentives for primary cooperative societies. Presenting the
Budget in Parliament today, Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman
proposed to extend the deduction allowed to a primary cooperative society for supply of cattle feed and
cotton seed produced by its members. Presently, deduction is allowed to a primary cooperative society
engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members.
The Finance Minister also proposed to allow inter-cooperative society dividend income as deduction
under the new tax regime to the extent it is further distributed to its members.
As an additional measure to support National Cooperative Federations, Smt. Nirmala Sitharaman further
proposed to allow exemption for a period of 3 years, to dividend income received by a notified national co
operative federation, on their investments made in companies up to 31.1.2026. This exemption would be
allowed only for dividends further distributed to its member co-operatives.
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NB/RC/VA
(रलीज़ आईडी: 2221407) आगंतुक पटल : 814
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