Budget 2026: New tax deduction on inter-cooperative dividend income under new tax regime announced by Nirmala Sitharaman

Contributing sentiments towards policy:

54% : All these services are proposed to be clubbed under a single category of Information Technology Services with a common safe harbour margin of 15.5% applicable to all the threshold for availing safe harbour for IT services is being enhanced substantially from 300 crore rupees to 2000 crore rupees safe harbour for IT services shall be approved by an automated, rule driven process without any need for tax officer to examine and accept the application.
51% : Finance Minister Nirmala Sitharaman in her Budget 2026 speech 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.
51% : Income Tax Guide Income Tax Union Budget FY 2026-27 LiveIncome Tax Slabs FY 2025-26Income Tax Calculator 2025 Finance Minister further proposed to allow exemption for a period of three years to dividend income received by a notified National Cooperative Federation on their investments made in companies up to 31 120, 26 this exemption would be allowed only for dividends, further distributed to its member cooperatives, supporting it sector as India's growth engine, India's global leader in software development services.

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