Urgent-deduction u/s 80p

Tax queries 683 views 6 replies
User Avatar

Chartered Accountant
140 Points Joined April 2009

One of my client is a Cooperative Society registered under State Cooperative Socities Act.The society is for the purpose of purchase and sale of fertilizers to local farmers and small retailers.So whether it can claim deduction of Rs.50000 under section 80P of the Income Tax Act.

The society is eligible for tax audit in this year as crossed 1crore turnover.So I also want to know that which forms are applicable to tax audit (Form 3CB and 3CD or 3CA and 3CD).The society is only one year old so no auditor has been appointed by the Registrar yet.Please reply

0 Reply Share Follow
On 30 September 2014 at 17:50 Report
Replies (6)
User Avatar

CA final CS executive (from Bangalore)
1881 Points Joined June 2008
It may falls under the categories of purchase and sale of agriculural implements to members(if the farmers are the members of the society). On this basis i can say Yes..so whole income from sale to members can claim deduction u/s 80P(2)(a). But sale of small retailers does nt fall in the above categories, if they are non-members. Ofcrse, they are non members. So it may fall under the head agency business.. we can take it as income from other activities..here we can claim general deduction upto Rs 50000 u/s 80P(2)(c).
Reply
On 30 September 2014 at 19:40
User Avatar

CA final CS executive (from Bangalore)
1881 Points Joined June 2008
Regarding tax audit, give me a day..i tell.
Reply
On 30 September 2014 at 19:42
User Avatar

Chartered Accountant
140 Points Joined April 2009
Hi Kishor, The sale is completely to non members.Still will it be eligible for deduction of rs.50000 under section 80p.and the forms applicable is 3CA or 3CB.
Reply
On 30 September 2014 at 21:05
User Avatar

CA final CS executive (from Bangalore)
1881 Points Joined June 2008
Ya, u can claim general deduction of rs 50000 even if the transaction with non members. And the society nt yet audited one so FORM 3CB.
Reply
On 30 September 2014 at 22:12
User Avatar

Chartered Accountant
140 Points Joined April 2009
Thanks Kishor. You are sure na.
Reply
On 30 September 2014 at 22:54
User Avatar

CA final CS executive (from Bangalore)
1881 Points Joined June 2008
Ya sure yr. After seeing my ca final book only am confirming this. For assessee whose buks are audited then form 3CA. In ur case, not audited so 3CB. U can cross check even in google search:)
Reply
On 30 September 2014 at 23:42


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading