Section 80P(2)(d) deduction allowable on Other Interest Income apart from 10% Net Profit Transferred to Reserved Fund

PCIT Vs Electro Urban Co-Operative Credit Society Ltd. (Calcutta High Court)

The issue under consideration is whether interest on deposits/securities, which strictly speaking accrues to the members’ account, could be taxed as business income under section 28 of Income Tax Act, 1961?

Supreme Court said, such interest income would come in the category of income from other sources. Hence, such interest income would be taxable under section 56 of the Act.

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