An overview of Section 80P:-
Following income are available for deduction to Co-operative societies
A. Income from Banking Business:- In Case of a cooperative society providing credit facilities to its members, the whole of the amount of profit and gain from such business are deductible. However deduction u/s 80 P is not available to any cooperative bank from A.Y. 2007-08. But primary agriculture credit society or a primary co-operative agriculture and rural development bank will continue to claim the benefit of deduction u/s 80P
B. Income from cottage industry:- Any cooperative society engaged in the business of cottage industry, the whole amount of profit or gain earned from the said business is eligible for deduction u/s 80P
C. Income from marketing & Processing of agriculture produce:- Any cooperative society engaged in the business of marketing & Processing of agriculture produce, the whole amount of profit or gain earned from the said business is eligible for deduction u/s 80P
D. Income from collective disposal of labour:- any income from the activity of collective disposal of the labour of its members is deductible u/s 80P
E. Income from Fishing & allied activities :- any income from fishing & allied activity is deductible u/s 80P
F. Income from supply of milk, oil seeds, fruits etc.:- whole amount of income of a cooperative society from activity of supply of milk, oil seeds, fruits etc. is deductible u/s 80P on fulfillment of certain conditions.
G. Income from other activities:- in case of other activities following amount deductible u/s 80P
a. In case of consumer cooperative society Rs. 100000
b. In any other case Rs. 50000
H. Income from interest & dividend from investment in other cooperative society
I. Income from Letting of godowns for storage, processing or facilitating of marketing of commodities
J. Income from interest on securities/ property income on certain restrictions
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