80p

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Akil Hussain (Querist)
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15 January 2013 IS section 80p applicable to a credit co-operative society.If yes what is the amount of deduction available?

Radhakrishnan K.V.

Radhakrishnan K.V. (Expert)
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15 January 2013 As per sec.80(P)(2)(a)all income from Banking and credit facilities provided to members are fully exempted from Income tax. This benefit is not available for co-operative banks i.e. urban banks,District co-operative banks and State co-operative banks.[section 80(P)(4)].
Income from other activities are exempted upto Rs.50000/-.
Recent court verdicts and orders of ITATs have made it clear that the Income tax authorities should not deny these benefit to these societies by classifying them as co-operative banks.