Clause 86 - Deduction of income of primary Co-operative societies. - Direct Taxes Code, 2010

Deduction of income of primary Co-operative societies. 86. (1) A person, being a primary co-operative society, shall be allowed a deduction in respect of the aggregate of the amounts referred to in sub-section (2). (2) The amount referred to in sub-section (1) shall be— (a) the amount of profits derived from agriculture or agriculture-related activities; and (b) the amount of income derived from any other activity, to the extent it does not exceed one lakh rupees. (3) In this section,— (a) "agriculture-related activities" means the following activities, namely:— (i) purchase of agricultural implements, seeds, livestock or other articles intended for agriculture for the purpose of supplying them to its members; (ii) the collective disposal of— (A) agricultural produce grown by its members; or (B) dairy or poultry produce produced by its members; and (iii) fishing or allied activities, that is to say, the catching, curing, processing, preserving, storing or marketing of fish or the purchase of material and equipment in connection therewith for the purpose of supplying them to its members; (b) "primary co-operative society" means a co-operative society whose rules and bye-laws restrict the voting rights to individuals engaged in agriculture or agriculture-related activities.