dividend declared by U.T.I

This query is : Resolved

p.hepsiba (Querist)
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22 February 2008 sir,
urban coperative bank has received dividend from U.T.I & it is shown as income in profit & loss account in their
report.
profit earned for the financial year 2006-07 includes dividend earned from U.T.I.
While filing the return for 2006-07(F.Y)Can the dividend be deducted from the profit shown in the books of accounts & then tax computed on the rest amount?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 February 2008 In computing the total income of a previous year of any person, any income received in respect of units from a Mutual Fund soecified under Section 10(23D)of Income tax Act is exempt u/s 10(35) of Income tax Act

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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23 February 2008 ANY INCOME RECD FROM MUTUAL FUND IS EXEMPT U/S 10(35).

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CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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23 February 2008 Dividends received from domestic companies and income received from units of the Unit Trust of India and specified mutual funds are no longer taxable in the hands of investors.

R.V.RAO

R.V.RAO (Expert)
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23 February 2008 INCOME IN RESPECT OF UNITS OF UTI AND INCOME IN RESPECT OF UNITS OF MUTUAL FUNDSSPECIFIED UNDER SEC 10 (23D) ARE EXEMPT FROM TAX WITHOUT LIMIT.
THEREFORE YOU CAN DEDUCT THE DIVIDEND
FROM UTI FROM YOUR PROFITS(SINCE YOU HAVE INCLUDED THE SAME UNDER PROFITS) AND COMPUTE TAXABLE INCOME.
BUT AS ADVISED EARLIER IN THIS FORUM WITH EFFECT FROM 2007-2008 ASSESSMENT YEAR, 80P DEDUCTION IS NOT AVAILABLE TO COOP. BANKS.
ONLY PRIMARY AGRICULTURAL CREDIT SOCIETY,
AND PRIMARY COOP.AGR.AND RURAL DEV. BANK CONTINUE TO GET DEDUCTION UNDER SEC. 80 P.
R.V.RAO