Deductions in respect of Co-operative Society. [80P]

The following amounts are allowed as deduction under this section –
(i) 100% of the profits attributable to any or more of the following activities in the case of a cooperative society engaged in –
(a) carrying on business of banking or providing credit facilities to its members; or
(b) a cottage industry; or
(c) the marketing of the agricultural produce of its members; or
(d) the purchase of agricultural implements, seeds, live stock or other articles intended for agriculture for the purpose of supplying them to its members;
(e) processing without aid of power of the agricultural produce of its members; or
(f) the collective disposal of the labour of its members; or
(g) fishing or allied activities; or
(h) primary cooperative society engaged in supplying milk raised by its member to a Federal Milk Coop.

Society or to the Government or a local authority or a Govt. Company or Corporation established under Central/State or Provincial, Act. Similar benefit is also extended to a primary Cooperative Society engaged in supplying oilseeds, fruits and vegetables raised or grown by its members.
(ii) The whole of interest and dividend income derived by a Cooperative Society from its investments in any other Cooperative Society;
(iii) The whole of interest income from securities and property income in the case of a Cooperative Society other than housing society or an urban Consumer Society or a Society carrying on transport business where gross total income does not exceed Rs.20,000.
Urban Consumer Cooperative Society means a society for the benefit of consumers within the limits of municipal corporation, municipality, municipal committee, notified area committee, town are or cantonment.
(iv) In respect of other activities carried on either independently or in addition to above activities upto a sum of Rs.50,000 (Rs.1,00,000 in case of consumer corporation society) – U/s. 80 P (2)(c).

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