cooperative bank

This query is : Resolved

p.hepsiba (Querist)
Follow

22 February 2008 pls give the reply .
I have tried 3 to 5 times with a query
my query is.
urban coperative bank has invested funds in other coperative banks as fixed deposits with a condition that after maturity interest earned will be added to the principal & again be reinvested.
what will be the treatment of interest accrued for the financial year 2007 ?
can the interest accrued be deducted from profit of the urban coperative bank u/s 80p as income derived by a cooperative society from investment in other coperative society?

R.V.RAO

R.V.RAO (Expert)
Follow

22 February 2008 interest accrued for financial year 2007 will be offered for tax as interst income .
as far as 80 P deduction is concerned
from assessment year 2007-08, deduction under 80 P IS NOT AVAILABLE TO ANY 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