03 October 2015
OURS IS A TALUKA LEVEL PRIMARY SCHOOL TEACHERS CO OP SOCIETY REGISTERED UNDER KARNATAKA CO OPERATIVE ACT .WE EARNED A NET PROFIT OF RS 5255650/-FOR THE FINANCIAL YEAR 2014-15.THAT NET PROFIT IS INCLUSIVE OF THE SUM OF RS.84500/-INTEREST ON ITS SAVINGS BANK ACCOUNT HELD IN STATE BANK OF INDIA NORMALLY ALL TRANSACTIONS ARE ROUTED THROUGH THIS S.B ACCOUNT .LET US ENLIGHTEN THE FOCUS ON TAXABLILITY OF SAVINGS BANK INTEREST AMOUNT U/S 80P(2)(aI)) MY QUERRY IS 1-ALL THE NET PROFIT OF RS.5255650/-IS EXEMPT U/S 80P(2)(aI) 2-WHAT ABOUT INTEREST EARNED ON NATIONALISED BANK SANINGS BANK ACCOUNT 3-WHICH IS EXEMPT AND NON EXEMPT(TAXABLE ) IN MY CASE, KINDLY ENLIGHTEN US SIR.
05 October 2015
It is not clear the activity carried out by the society. Income from gains of business and profession is exempt if the activity falls under any of the clauses of 80P(2)(a). The income earned in saving account in State Bank of India is not exempt. However, if you keep you saving account in some co-operative bank, the interest income shall be exempt under Section 80P(2)(d).
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