Clause 85 - Deduction of income of cooperative society from banking activities. - Direct Taxes Code, 2010

Deduction of income of cooperative society from banking activities. 85. (1) A person, being a primary co-operative society, shall be allowed a deduction to the extent of profits derived from the business of providing banking, or credit, facility to its members. (2) In this section "primary co-operative society" means— (a) a "primary agricultural credit society" within the meaning of Part V of the Banking Regulation Act, 1949; or 10 of 1949. (b) a "primary co-operative agricultural and rural development bank", which (i) has its area of operation confined to a taluk; and (ii) is mainly engaged in providing long-term credit for agricultural and rural development activities.