60. Funds not to be divided by way of profit.- (1) No part of the funds, other than net profits, of a multi-State cooperative society shall be divided by way of bonus or dividend or otherwise distributed among its members. (2) The net profits of a multi-State cooperative society referred to in sub-section (1) in respect of a society earning profit shall be calculated by deducting from the gross profits for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the tem being in force, and equilisation fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961, development rebate, provision for development fund, bad debt fund, price fluctuation fund, dividend equalisation fund, share capital, redemption fund, investment fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad debt and losses not adjusted against any funds created out of profit. Provided further that in case of such multi-State cooperative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be dealt with in accordance with the bye-laws. |
