#section 80p

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Interest Income of Co-Operative Bank on deposits with Co-operative Bank not eligible for Deductoion U/s. 80P

Interest Income of Co-Operative Bank on deposits with Co-operative Bank not eligible for Deductoion U/s. 80P

In the present case, we find that the assessee has earned interest income on fixed deposits made by the assessee with sub-treasury, Meenachili, Kadappattoor and SBI Pala totaling Rs. 20,21,909/- and the interest income earned on the surplus funds of the assessee cannot be considered as business income so as to be entitled for deduction u/s. 80p(2)(a)(i) of the I.T. Act.   Further, we came across…

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Section 80P and income from investments – Co-operative Credit Societies- a nightmare

Section 80P and income from investments – Co-operative Credit Societies- a nightmare

CA Vinay V. Kawdia

“Today, we don’t need good laws to restrain bad people. We desperately need good people to restrain bad laws”

Introduction:

Co-operative credit societies enjoy the deduction u/s 80P in respect of the whole of their income attributable to banking business. However, the term ‘income attributable to banking business’has become a vexed term, especially in light of recent judicial…

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Section 80P(4) not applies to assessee which is not a co-operative bank

Section 80P(4) not applies to assessee which is not a co-operative bank

Deduction  U/s. 80P cannot be denied to Society extending credit facilities to members only

From the provisions of sub-section 4 of section 80P and the Explanation to section 80P, it is evident that the benefit of section 80P is not available to co-operative banks whereas the Primary Agricultural Credit Societies are entitled for the same.

For the purpose of sub-section 4, ‘co-operative bank’…

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Taxation of Cooperative Societies Under Direct & Indirect Tax Provisions

Taxation of Cooperative Societies Under Direct & Indirect Tax Provisions

Kalpataru Ghosh, CA, CS

U/s 2(19) of the Income Tax Act 1961, ‘cooperative society’ means a cooperative society registered under the Cooperative Societies Act, 1912 (2 of 1912), or under any other law for the time being in force in any State for the registration of the cooperative societies. (more…)

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Section 80P(4) applies only to Co-Operative Credit Society not to co-operative bank

Sub-section(4) of section 80P will not apply to an assessee which is not a co-operative bank. In the case clarified by CBDT, Delhi Coop Urban Thrift & Credit Society Ltd. was under consideration. Circular clarified that the said entity not being a…

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