Section 150
Section 150: deduction for a federal co-operative's dividend income
Section 150 is a narrow, time-bound relief for a "federal co-operative" (as defined under the Multi-State Co-operative Societies Act, 2002, and notified by the Central Government). It lets such a body deduct dividend income from its investments in companies, but only for dividends recorded on or before 31 January 2026 and distributed to members within the time the section sets, and only up to the tax year beginning 1 April 2029.
The deduction
Where the gross total income of an assessee, being a federal co-operative, in any tax year includes income by way of dividends received from its investment with any company, a deduction is allowed from such income, to the extent of the amount which:
- Has arisen from such investment as recorded in its books of account on or before 31 January 2026; and
- Has been distributed by it to its members at least one month before the due date for filing the return of income under section 263(1).
Sunset date
The provisions of this section do not apply to any tax year beginning on or after 1 April 2029.
Definition
"Federal co-operative" means a "federal co-operative" as defined in section 3(k) of the Multi-State Co-operative Societies Act, 2002, and notified as such by the Central Government.
Frequently asked questions
Which dividend income qualifies under Section 150?
Only dividend income from investments in a company that was recorded in the federal co-operative's books of account on or before 31 January 2026.
Is there a condition on distributing the dividend to members?
Yes - the deductible amount must have been distributed by the federal co-operative to its members at least one month before the due date for filing the return of income under section 263(1).
Until when is this deduction available?
The section does not apply to any tax year beginning on or after 1 April 2029.
Who counts as a "federal co-operative" for this section?
A body defined as a "federal co-operative" under section 3(k) of the Multi-State Co-operative Societies Act, 2002, and notified as such by the Central Government.
Related sections
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Talk to our tax team about co-operative society tax deductionsLast updated 9 September 2026