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?
22 February 2008
interest accrued for financial year 2007 will be offered for tax as interst income taxable. 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
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