Applicability. of income tax to co-operative. societies

This query is : Resolved

Ramamoorthy (Querist)
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24 October 2014 Assessee is a co-operative the most transection of this society lending loan for the purpose of agricultural as non agricultural including jewel loan weather. the income tax applicability is arrise or not; assume that the income of above mentioned. assessee is more then ?20000000

Prakash Kochar

Prakash Kochar (Expert)
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27 October 2014 Income of Co-op. societies from interest on lending to member qualifies for deduction u/s. 80P(2). If itis a co-op. Bank other than the primary agricultural credit society or a primary co-op. agricultura land rural development bank, deduction is not allowed as per sect. 80P(4)from AY 07-08.
On this point many cases are decided in favor of co-op. societies.