Applicability of Income Tax to Co-Op Credit Societies

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Mahesh (Querist)
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19 August 2007 Friends,
With Section 80 P gone for co operative banks; whether the co-operative credit societies; which are registered with the department of co-operation only and not with the RBI under the Banking Regulation Act; would also be required to pay the Income Tax on the profit they earn.
If yes, apart from the regular deductions; which special deductions can be claimed in respect of such co-operative credit societies?
If, the tax is to be paid, since, most of the co-operative credit societies have finalised their accounts and declared dividends without making any adjustments for payment of tax; where to adjust such tax payment for the F.Y. 2006-2007 since there would be no provision for payment of Income Tax in the audited accounts of such societies.
Urgent reply is expected.
Thanks,

Mahesh

vishal

vishal (Expert)
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15 November 2007 Hi mahesh

Your question is very simple deduction u/s 90 P has not be withdrawan for credit co-operative society. hence there is no question of any taxation except Fringe Benefit Tax. But you have to ensure that society should not hold any banking license from RBI
and it should not be an agricultural credit society