21 February 2008
urban cooperative bank has invested funds as fixed deposit in other coperative bank. it has invested with a condition that at the time of maturity the interest will be added to principal amount & again will be reinvested.what will be the treatment of interest accrued for the financial year 2006-07? will it not be claimed u/s 80p from the profit of the bank as income derived by the cooperative society from investment made in other cooperative society?
21 February 2008
from assessment year 2007-08, deduction under 80 P IS NOT AVAILABLE TO A COPERATIVE BANK. ONLY PRIMARY AGR.CREDIT SOCIETY,PRIMARY COOP. AGR AND RURAL DEV. BANK WILL CONTINUE TO GET DEDUCTION UNDER 80 P. R.V.RAO
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