Interest income earned by a cooperative society from deposits ...

Interest income earned by a co-op society from deposits with another co-op bank is tax-deductible u/s 80P(2)(d). However, excess gratuity fund contribution is rightly disallowed.

Case Laws Income Tax

July 23, 2024

Interest income earned by a cooperative society from deposits made with another cooperative bank is eligible for deduction u/s 80P(2)(d) of the Income Tax Act. The provision unambiguously allows deduction for interest income derived from investments with other cooperative societies. Therefore, the appellant cooperative society is entitled to claim deduction u/s 80P(2)(d) for the interest received from the Punjab State Cooperative Agricultural Development Bank. However, the excess contribution made by the appellant to the Gratuity Fund, over and above the permissible limit of 8.33% under the applicable rules, has been rightly disallowed and added back to its total income under the head "Income from Other Sources" by the tax authorities.

View Source

← Previous Next →

Interest income earned by a cooperative society from deposits ...

Interest income earned by a co-op society from deposits with another co-op bank is tax-deductible u/s 80P(2)(d). However, excess gratuity fund contribution is rightly disallowed.

Case Laws Income Tax

July 23, 2024

You may also like:

Revision u/s 263 - Deduction u/s 80P(2)(a)(i) - interest income was received by the assessee on deposits - section 80P(2)(d) of the Act specifically exempts interest...

Deduction u/s 80P - deduction of income earned as interest/dividend from co-operative bank is allowable. Section 80P(2)(d) reflects that if income by way of interest or...

Deduction u/s 80P(2)(d) was allowed for interest income earned by the assessee from fixed deposits and savings accounts with Ahmedabad District Co-operative Bank...

Deductibility of interest income from investments u/s 80P(2)(a)(i) of the Income Tax Act for a primary agricultural credit cooperative society. The key points are: The...

Deduction u/s 80P(2)(d) - Interest income earned by the Society comes with the category of income from other sources and Section 80P(2)(d) deals with the eligible...

Deduction u/s 80P(2)(a)(i) was denied by the Assessing Officer on grounds that the assessee society cannot be termed a mutual concern and principles of mutuality cannot...

Allowability of deduction u/s 80P(2)(d) for interest income from deposits/investments in a cooperative bank by a cooperative society. The assessee, a cooperative society...

Disallowance of deduction(s) u/s 80P - interest income from the investments made in co-operative/other bank(s) - The tribunal analyzed Sec. 80P(2)(d) and determined that...

The interest income earned on deposits made with other co-operative banks/society are fully deductible u/s. 80P(2)(a)(i) from the income liable to tax though the...

Interest income earned by a co-operative society formed and managed by the Government, in its regular course of operations, forms part of revenue attributable to...

Deduction u/s 80P(2) on interest income - To invest the deposits accepted from the members or the surplus funds available with it, is part of the banking/credit business...

Co-operative bank registered under state Act, main objective providing credit facility to members who are employees, funds contributed by members given as loans on...

Deduction u/s 80P(2)(a) is allowed for a cooperative society earning interest and dividend income from deposits with a Delhi State Cooperative Bank registered under the...

The assessee claimed deduction u/s 80P(2)(d) of the Income Tax Act for interest income earned on deposits with a Cooperative Bank. The Assessing Officer and CIT(A)...

The High Court upheld the Tribunal's decision allowing deduction u/s 80P(2)(d) of the Income Tax Act to the assessee, a cooperative society, on the interest income...

Quick Updates: