Section 80P

Taxation of Co-Operative Society

Income Tax - Section 80P: Deduction in respect of Income of Co-operative Societies In case of all co-operative societies, except co-operative banks (excluding a primary agricultural credit society or a primary co-operative agricultural and rural development bank), full deduction is allowable in respect of the following income: A.Where 100% deduction i...

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Tax on Bank Interest of Co-Op Society, Club or Mutual Association

Income Tax - 1. Interest earned from investment in Co-operative & other banks: It is known fact that socities are earning interest income from investments such as F.D., etc. with co-operative & other banks. In the computation of total income, the assessee wrongly claim the said interest income as deduction u/s. 80P(2)(d) of the Income tax Act, 1961....

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Taxation of Cooperative Societies under Direct & Indirect Tax

Income Tax - 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....

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Section 80P & income from investments – Co-op Credit Societies- a nightmare

Income Tax - Co-operative credit societies enjoy the deduction under section 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 developments on the subject matter....

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Tax Treatment of Co-operative Credit Society

Income Tax - Co operative Credit society providing banking or credit facility to its members is taxable under section 80P or not? Meaning and Definitions: 1) Meaning of Co operative Society: Section 2(19) of IT Act, 1961: ‘Cooperative Society’ means a co-operative society registered under the Co-operative Societies Act, 1912 (2 of 1912), o...

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Clarify on exemption of interest on deposits by co-operative societies with multi-State cooperative banks

Income Tax - The anomalous position may be rectified by making suitable amendment in section 2(19) defining a Co-operative Society, by including therein a society registered under the Central Act currently applicable....

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Co-operative society eligible for section 80P(2)(a)(i) deduction

Varathappam Palayam Primary Agricultural Co-op. Credit Society Vs ITO (ITAT Chennai) - Assessee, being co-operative society, is out of the provisions of section 80P(4) and eligible for deduction under section 80P(2)(a)(i)...

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Section 80A(5) not apply if return of income is not filed

Prathamika Krishi Pattina Vs ITO (ITAT Bangalore) - ITAT held that that section 80A(5) of the Act is applicable only when a return of income is filed by an assessee and a deduction under Chapter VI A of the Act, is not claimed in such return of income. It will not apply to a case where no return of income is filed....

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No section 80P deduction on interest income on investments with co-op Banks

Manjunatheshwara Credit Co-operative Society Limited Vs ITO (ITAT Bangalore) - Assessee was neither entitled to deduction under section 80P(2Xd) nor under section 80P(2)(a)(i) in respect of interest income earned from investments with Cooperative Banks such interest income was to be assessed as income from other sources....

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Interest/dividend from Co-Op Bank eligible for section 80P deduction

Indian Bank Employees Cooperative Credit Society Limited Vs ITO (ITAT Mumbai) - Indian Bank Employees Cooperative Credit Society Limited Vs ITO (ITAT Mumbai) Brief facts are that the assessee is The Indian Bank Employees Cooperative Credit Society Limited. On perusal of the profit and loss account and the computation of income, the Assessing Officer observed that the assessee h...

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Section 80P(2)(a) deduction not eligible on Income from house property

ITO Vs Hosdurg Service Cooperative Bank Limited (ITAT Cochin) - ITO Vs Hosdurg Service Cooperative Bank Limited (ITAT Cochin) The CIT(A) had held rental income received by the assessee was not entitled to deduction u/s 80P(2) of the I.T.Act. The relevant finding of the CIT(A) reads as follows:- “The appellant derived rental income amounting to Rs.24,400/- in A...

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Clarification regarding eligibility of deduction under Section 80P to Regional Rural Banks

Circular No. 6/2010-Income Tax - (20/09/2010) - Circular No. 6/2010-Income Tax 2.As Regional Rural banks (RRB) are basically corporate entities (and not cooperative societies, they were considered to be not eligible for deduction under section 80P when the section was originally introduced. However, as section 22 of the Regional Rural Bank Act p...

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Recent Posts in "Section 80P"

Co-operative society eligible for section 80P(2)(a)(i) deduction

Varathappam Palayam Primary Agricultural Co-op. Credit Society Vs ITO (ITAT Chennai)

Assessee, being co-operative society, is out of the provisions of section 80P(4) and eligible for deduction under section 80P(2)(a)(i)...

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Section 80A(5) not apply if return of income is not filed

Prathamika Krishi Pattina Vs ITO (ITAT Bangalore)

ITAT held that that section 80A(5) of the Act is applicable only when a return of income is filed by an assessee and a deduction under Chapter VI A of the Act, is not claimed in such return of income. It will not apply to a case where no return of income is filed....

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No section 80P deduction on interest income on investments with co-op Banks

Manjunatheshwara Credit Co-operative Society Limited Vs ITO (ITAT Bangalore)

Assessee was neither entitled to deduction under section 80P(2Xd) nor under section 80P(2)(a)(i) in respect of interest income earned from investments with Cooperative Banks such interest income was to be assessed as income from other sources....

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Interest/dividend from Co-Op Bank eligible for section 80P deduction

Indian Bank Employees Cooperative Credit Society Limited Vs ITO (ITAT Mumbai)

Indian Bank Employees Cooperative Credit Society Limited Vs ITO (ITAT Mumbai) Brief facts are that the assessee is The Indian Bank Employees Cooperative Credit Society Limited. On perusal of the profit and loss account and the computation of income, the Assessing Officer observed that the assessee has offered net income from business and ...

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Section 80P(2)(a) deduction not eligible on Income from house property

ITO Vs Hosdurg Service Cooperative Bank Limited (ITAT Cochin)

ITO Vs Hosdurg Service Cooperative Bank Limited (ITAT Cochin) The CIT(A) had held rental income received by the assessee was not entitled to deduction u/s 80P(2) of the I.T.Act. The relevant finding of the CIT(A) reads as follows:- “The appellant derived rental income amounting to Rs.24,400/- in A.Y. 2007-08, Rs.21,950/- in A.Y. 2008-09...

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Section 80P deduction eligible on Interest on Security Deposit & commission for collection of MSEDCL bills

Bhagyalaxmi Nagri Sahakari Patsanstha Meryadit Vs ITO (ITAT Pune)

Bhagyalaxmi Nagri Sahakari Patsanstha Meryadit Vs ITO (ITAT Pune) The first item is the commission income from MSEDCL amounting to Rs.60,363/-. The assessee has contended in its written submissions that similar issue came up for consideration before the Pune Tribunal in Banganga Nagri Sah. Patsanstha Ltd. (ITA No.873/PUN/2014) and the Tri...

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No section 80P deduction on Interest earned from investments made with Co-op Bank

Nikhara Souharda Credit Co- operative Limited Vs ITO (ITAT Bangalore)

Interest earned from investments made with Co-operative Bank, not being Co-operative Bank was not deductible either under section 80P(2)(d) or under section 80P(2)(a)(i). Such interest income was to be assessed as income from other sources, however, deduction under section 57 was to be given in respect of expenditure for earning interest ...

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Section 80P(2)(d) deduction not eligible on interest earned on Investments made in any Bank

Krishnarajapet Taluk Agri Pro Co-op Marketing Society Ltd. Vs PCIT (ITAT Bangalore)

To the extent of the interest earned from investments made by it with any co-operative society, a co-operative society is entitled to deduction of the whole of such income under section 80P(2)(d) of the Act. However, interest earned from investments made in any bank, not being a co-operative society, is not deductible under section 80P(2)...

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80(2)(d) cannot be invoked to co-op banks unless they have RBI license

V.K. Natha co-operative Vs ACIT (ITAT Mumbai)

V.K. Natha co-operative Vs ACIT (ITAT Mumbai) Ld. Counsel of the assessee submitted that the issue involved in these appeals related to treatment of interest received by co-operative societies from other co-operative societies including cooperative bank under section 80P(2)(d). He submitted that the issue is squarely covered in favour of ...

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Co-Op society eligible for Section 80P(2)(d) deduction on Interest income from Other Co-Op societies

Rena Sahakari Sakhar Karkhana Ltd. Vs PCIT (ITAT Pune)

Rena Sahakari Sakhar Karkhana Ltd. Vs PCIT (ITAT Pune) We find that the issue that a co-operative society would be entitled for claim of deduction under Sec. 80P(2)(d) on the interest income derived from its investments held with a co-operative bank is covered in favour of the assessee in the following cases: (i) M/s Solitaire […]...

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