Deduction in respect of income of co-operative societies - Clarification regarding Regional Rural Banks purpose of Section 80P of the Income-tax Act, 1961

Deduction under Section 80P: Regional Rural Banks are excluded and prior circular deeming them cooperative societies withdrawn.

Deduction under Section 80P concerns relief to cooperative societies and whether Regional Rural Banks qualify; although a prior CBDT circular had deemed RRBs to be cooperative societies, an amendment excluded most cooperative banks from Section 80P and the Board clarifies that RRBs are not eligible for the deduction from the relevant assessment year, withdrawing the earlier deeming circular and directing field officers to take remedial action.