20 February 2008
a urban cooperative bank has invested funds as fixed deposit in other cooperative bank with a condition that after the maturity the interest will be added to the principal & reinvested . what will be the treatment of accrual interest for the financial year 2006-07? can this interest be claimed as deduction from the profit of the urban coperative bank as income derived by the coperative society from its investment in any other coperative society?