Interest received on FD & SB from Co-operative Bank

Tax queries 3878 views 2 replies

Yogesh Kini

Tax Consultant

39 Points Posted on 07 October 2019

Hello Members,

I want to file Income tax return of Co-operative Housing Society for AY 2019-20. I need some clarification and Queries that are to be clear regarding Taxation on cooperative housing society.

1. Interest received on Fixed Deposit and Saving interest u/s 80P of Income tax Act 1961 to Cooperative Housing society.

2. Incomes that are taxable and taxation for Cooperative Housing Society.

Kindly guide me. waiting for your valuable response.

Replies (2)

1. Under 80P interest received by housing society from Co-operative bank is 100% Exempt.
From other banks it's taxable.

2. The societies are taxed as per the following slab: _

Income upto Rs 10000 10 %

Income upto Rs 10001 - 20000 20 %

Above 20000/- 30 %

+ Cess @ 4%

Suresh Thiyagarajan

Student

3986 Points Posted on 08 October 2019

1. For co-operative society, income will be exempted as per sec 80P. Income which is in nature referred to in sec 80P will qualify for deduction provided conditions are satisfied.
2. As per sec 80P(2)(d) interest and dividend income received from other co-operative society will qualify for 100% deductions.
3. In your case you have mentioned as FD, if the deposit is made in another Co-operative society then 100% deductions will be available u/s 80P. If the same is made in the bank (other than a co-operative bank) then it will be subject to tax under the head Income from other sources.
4. The same applies to interest received from Savings.
5. Income up to Rs. 10,000 @ 10%
Income from Rs. 10,000 to Rs. 20,000 @ 20% + Rs.1,000
Income above Rs. 20,000 @ 30% + Rs. 3000
Surcharge @ 12% if the income exceeds Rs. 1 crore and Edu cess @ 4% will be applied after surcharge.
Please correct me if the above solution has an alternative view.